published to October 10, 2014
Purchase employee health insurance through the Small Business Health Options Program (SHOP) marketplace and receive tax credits of up to 50% of your premium contributions.
Two new tools are now available in Spanish CuidadoDeSalud.gov To help small employers understand and maximize the benefits they can get from SHOP.
new Full Time Equivalent (FTE) Calculator Helps small employers determine if they are eligible to purchase SHOP insurance for their employees. SHOP Tax Credit Estimate Smaller employers can find out how much tax credit they can get by contributing to employee coverage through SHOP.
Here are some important things to know about claiming tax credits and SHOP.
- Employers with fewer than 25 full-time equivalent employees: Small Business Healthcare Tax Creditup to 50% of the employer’s premium contribution if the employee earns an average of $50,000 or less.
- The tax credit is available to eligible employers for two consecutive taxable periods.
- The tax credit is available to tax-exempt employers who are eligible to receive up to 35% of employer premium contributions, which can be deducted as a refund.
- Generally, the Small Business Healthcare Tax Credit is available to eligible employers who purchase a SHOP health plan.
- Visit IRS.gov for the latest information and guidance on applying for this tax credit..
- Even small employers who are not eligible for the small business tax credit can purchase insurance through SHOP.
Sign up for SHOP coverage any time of the year
SHOP is open to employers with 50 or fewer full-time equivalent employees (FTEs) and registration is open year-round.
If your state operates its own SHOP, please visit your state’s marketplace to learn how FTE is calculated.
Please select a state And we’re here to help you get started. For questions about the SHOP marketplace, call 1-800-706-7893 (TTY: 711) Monday through Friday, 9am to 7pm ET. Please call us. Agents and brokers can also use this number.