The IRS encouraged small employers to review the requirements for claiming the credit under IRC Sec. 45R that was designed to help small businesses and tax-exempt organizations provide health insurance for their employees. The maximum credit goes to employers with 10 or fewer Full-time Equivalent (FTE) employees paying annual average wages of $25,000 or less, and is phased out for employers that have more FTEs or pay average wages of $25,000 or more per year. The credit is claimed on Form 8941 (Credit for Small Employer Health Insurance Premiums) or 990-T for tax-exempt organizations. News Release IR-2012-33 .