What are Qualified Health Plan Expenses for ERTC?

Qualified health plan expenses are a component of the Employee Retention Tax Credit (ERTC) that can increase the credit amount for eligible employers[1][6]. 

Here are some facts about qualified health plan expenses for ERTC:

• Definition: Qualified health plan expenses are expenses paid by the employer to provide and maintain a group health plan, including insurance premiums[1][6].
• Eligible Period: For 2020 and 2021, qualified health plan expenses can be included in the calculation of the ERTC for any quarter in which the employer is eligible for the credit[1][6].
• Limitations: The amount of qualified health plan expenses that can be included in the ERTC calculation is subject to certain limitations. For example, the credit amount cannot exceed the total qualified wages paid to employees during the eligible period[1][6].
• Form 941-X: To claim qualified health plan expenses for ERTC, eligible employers can file Form 941-X, Adjusted Employer's Quarterly Federal Tax Return or Claim for Refund. The form includes a specific line for reporting qualified health plan expenses[1][6].

It's important to note that the ERTC has undergone updates and changes since its introduction. Employers should stay updated with the latest IRS guidance and consult with tax professionals to ensure compliance with eligibility requirements and maximize the benefits of the credit[1][4][5][6].

In conclusion, qualified health plan expenses are a component of the Employee Retention Tax Credit (ERTC) that can increase the credit amount for eligible employers. By understanding the definition, eligible period, limitations, and filing requirements of qualified health plan expenses, eligible employers can take advantage of this financial incentive to retain their employees during challenging economic times.