The Estimator automates many of the steps necessary to determine if you qualify for the credit. To calculate the credit yourself, you need to complete the following steps:

1. Figure your Full Time Equivalent employees (FTEs),
2. Figure the average annual wages based on your FTEs,
3. Apply the State Average Premium Limitation, if any, to your share of the premiums for each employee,
4. Find your maximum credit - 25% or 35% of your share of premiums,
5. Calculate the credit phaseout if you have more than 10 FTEs,
6. Calculate the credit phaseout if you pay more than $25,000 average annual wages,
7. Apply the cap on the credit if you received State premium subsidies or tax credits,
8. Apply the cap on the credit if you are an eligible tax exempt employer, then finally
9. Find your actual credit.

The Estimator helps you to determine:

1. Your FTEs,
2. Your average annual wages based on your FTEs,
3. If your insurance plans potentially meet the qualifying arrangement requirement,
4. The credit phaseout if you have more than 10 FTEs,
5. The credit phaseout if you pay more than $25,000 average annual wages,
6. What the limitations based on State Subsidies and Tax Credits or the State Average Premiums may be,
7. If you are an eligible tax-exempt employer, what your payroll tax limitation may be, and
8. An approximate amount of the credit.

The estimator is designed to give you an overview of the credit and help you determine if you may qualify. It cannot calculate your actual credit for you. However, you can use the estimate it provides for tax planning and to decide whether the potential credit is worth claiming.