Small employers who enroll in SHOP (Small Business Health Options Program) health insurance coverage for their employees may be eligible for the Small Business Health Care Tax Credit, which is worth up to 50% of their premium contribution.
Companies may qualify for the tax credits if they have fewer than 25 full-time equivalent employees who make an average of about $50,000 a year or less. In addition, they must pay at least 50% of their full-time employees’ premium costs, and offer coverage to these employees through the SHOP Marketplace.
Employers can start offering SHOP coverage to their workers at any time of the year.
There are a number of reasons in addition to the tax credits to use the SHOP Marketplace to offer employee insurance.
SHOP gives employers a lot of flexibility. They can offer employees one plan, or let them choose from multiple plans. They can offer only health coverage, health and dental coverage, or only dental coverage.
The company can choose how much it will pay toward employees’ premiums, and whether to offer coverage to their dependents. It can also decide how long new employees must wait before joining the plan.
The employer can handle everything online: applying, choosing plans, managing the coverage, and paying premiums whenever it’s convenient for the employer.
A company can use its current insurance agent or broker, work with any SHOP-registered agent or broker, or handle everything itself. There is no extra cost for using agent or broker.
Additional information, including a SHOP Tax Credit Estimator, is available on HealthCare.gov.