You may qualify for the Small Business Health Care Tax Credit that could be worth up to 50% of the costs you pay for your employees' premiums (35% for non-profit employers).
Enrolling in a Small Business Health Options Program (SHOP) plan is generally the only way for a small business or non-profit to claim the Small Business Health Care Tax Credit. To qualify for the tax credit, all of the following must apply:
The IRS has released new guidance on qualifying for the Small Business Health Care Tax Credit that may apply to small employers in areas with no available SHOP plans. Learn more.End highlighted text
The tax credit is highest for companies with fewer than 10 employees who are paid an average of $25,000 or less. The smaller the business, the bigger the credit.
Here's one scenario:
Generally, yes. Buying SHOP insurance is generally the only way to qualify for the Small Business Health Care Tax Credit.
Generally, seasonal workers aren't included in the full-time employee and wage calculation unless they work for you more than 120 days during the tax year. Learn more about seasonal workers from the IRS.
The Internal Revenue Service has more information about the Small Business Health Care Tax Credit.