Will I qualify for small business health care tax credit?
To qualify for the Small Business Health Care Tax Credit, you must pay at least 50% of your full-time employees’ premium costs. You don’t need to offer coverage to your part-time employees or to dependents.
The tax credit is worth up to 50% of your contribution toward employees’ premium costs (up to 35% for tax-exempt employers).
Higher benefits for smaller businesses
Example of how the tax credit works:
Wages: $250,000 total or $25,000 per employee
Employee Premium: $450 / EE / Mo.
Employer Premium Contribution: 75% of EE or $337.50 / EE / Mo.
Employer Annual Contribution to Employee Premiums: $40,500
Tax Credit Amount: $20,250 (50% of employer’s contribution)
Net Employer Cost: $20,250 or $168.75 / EE / Mo.
Have questions about the SHOP Marketplace for businesses with 50 or fewer employees? Call 214-443-1400 or email George Knox
What You Need to Know About The Small Business Health Care Tax Credit?
What Qualifies as Eligible Health Insurance Coverage for the Tax Credit?
Which Of My Employees Should Be Included in the Calculation?
Do you qualify for a small business health care tax credit?
Small Business Tax Credit Estimator