See If You’re Eligible for The Small Business Health Care Tax Credit!

The Small Business Health Care Tax Credit

If you participate in the Small Business Health Options Program (SHOP) and have fewer than 25 full-time equivalent employees, you could qualify for savings through the Small Business Health Care Tax Credit! 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 calculator below to see if your small business qualifies and how much you could save! 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 your employees’ premium costs if you qualify.

No SHOP plans in your area? The IRS has established guidance on qualifying for the Small Business Health Care Tax Credit that may apply to small employers in areas with no available SHOP plans. Learn more.

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).