Changes
Jump to navigation
Jump to search
To qualify for the small business tax credit, employers have to cover at least 50% of employee-only health care coverage for every employee and purchase their insurance coverage through the SHOP Exchange. Additionally, only employers with 10 or fewer FTE with annual wages of less than $10,000 can qualify for the full tax credit that covers up to 50% of their share of employee premiums.
→Small Employer Health Insurance Tax Credit
*Firm must emlploy fewer than 25 full-time equivalent (FTE) employees
*Average employee salary is $50,000 per year or less
*Employer covers at least 50% of your full-time employees' premium costs(coverage is not required for part-time employees)
*Coverage for full-time employees is purchased through the SHOP Marketplace
The health insurance tax credit became available to firms in 2014 [http://obamacarefacts.com/insurance-exchange/shop-exchange/]. The tax credit is incredibly under-inclusive, and according to the National Federation of Independent Businesses, only one in three small businesses qualify [http://www.ncpa.org/pub/st356]. Of the estimated 1.4 to 4 million small businesses that were eligible for the wide range of tax credits, only 181,000 actually claimed the Small Employer Health Insurance Tax Credit in 2014.
