ESP Benefit Design, LLC

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 What Is The Small Business Health Care Tax Credit

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 Small Business Health Care Tax Credit, you must pay at least 50% of your full-time employees' premium costs. You don’t need to offer coverage to your part-time employees or to dependents.

The tax credit is worth up to 50% of your contribution toward employees' premium costs (up to 35% for tax-exempt employers).

The tax credit is in lieu of the tax deduction normally taken.

Click Below for:

Tax Credit FAQ

Tax Credit Brochure

To be eligible for the tax credit you must purchase a SHOP plan through the healthcare.gov website. Keep in mind that you are still be receiving benefits from one of may insurance carriers participating in the SHOP program although the number of plan choices is limited compared to carriers non-shop plan offerings. Rates are the same for shop and non-shop plans.

ESP Benefit Design can assist you in the determination of tax credit eligibility, providing SHOP plan quotes, and enrollment in the event you choose to go this route.

Contact Bill Frazier at 614-882-8535 or email him at bill@espbd.com for more information.