The Small Business Health Care Tax Credit

The Small Business Health Care Tax Credit

As your small business continues to grow, so does the need for quality, affordable health insurance for your employees.  By participating in the Small Business Health Options Program (SHOP), you could qualify for savings towards your employees’ premium costs through the Small Business Health Care Tax Credit. Did you know the tax credit is highest for businesses with fewer than 10 employees who are paid an average of $25,000 or less? Your savings could be worth up to 50% of premium costs if you qualify! To be eligible for the tax credit, you’ll generally need to meet each of these requirements: Have fewer than 25 full-time equivalent (FTE) employees Have an average employee salary of $55,000 or less Pay at least 50% of your full-time employees’ premium costs Offer SHOP coverage to all of your full-time employees (you won’t have to offer it to dependents or part-time employees to qualify) Use the Small Business Health Care Tax Credit Estimator below to see if your business qualifies, and find out how much you could save!

Questions? Contact your insurance company or an agent or broker for help. For additional assistance, contact the SHOP Call Center at 1-800-706-7893 (TTY: 1-888-201-6445).