small-business health care tax credits

What are small-business health care tax credits?

Employer tax credits – or Small Business Health Care Tax Credits – provide a tax credit of up to 50 percent of small business premium, for up to two consecutive years. Who’s eligible? Employers with fewer than 25 full-time workers and average annual wages less than $52,000, as long as the employer pays at least 50 percent of full-time employees’ premium costs and obtains the coverage through the SHOP exchange (note that CMS has established a new system that uses the SHOP exchange for eligibility determinations — including eligibility for the small business health care tax credit — but then allows employers to enroll directly through the insurers of their choice; the tax credit remains available for these employers if they’re otherwise eligible). Read more about the small business health care tax credit.