If you’ve just finished filing your taxes for your business this year, you might not be eager to think ahead already to the next round, but here’s the good news:
If you purchase coverage through the SHOP marketplace for your small business, you could qualify for a significant tax credit.
Here’s what you need to know:
- If you are eligible, the tax credit is worth up to 50% of how much you pay toward your employees’ premiums
- You MUST purchase your coverage through the SHOP marketplace to be eligible
- You also must pay at least 50% of your full-time employees’ premiums to be eligible
- The tax credit is only offered to small businesses who have 25 or less full-time employees who are making an average of $50,000 or less
- The smaller your business is (in employee size), the larger the credit will be – particularly in the range of less than 10 employees making an average of $25,000 or less
To see more in-depth information on the tax credit, see the section here on IRS.gov.
As a reminder, even though the national and state run marketplaces such as Covered California are currently closed to individuals, your small business can still find group health coverage through the SHOP program – and you could even save 30 – 50% each month. Just call us at (866) 619-2407 and our agents will help you get started – at no charge from us, ever!