You may qualify for employer health care tax credits if you have fewer than 25 full-time equivalent employees making an average of about $50,000 a year or less.
To qualify for the tax credit, all of the following must apply:
The tax credit is worth up to 50% of your contribution toward your employees' premium costs (up to 35% for tax-exempt employers).
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:
Yes. You can buy coverage for your employees various ways. But the only way to qualify for the Small Business Health Care Tax Credit is by using the SHOP Marketplace.
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.