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.
See if you qualify for the Small Business Health Care Tax Credit
To qualify for the tax credit, all of the following must apply:
- You have fewer than 25 full-time equivalent (FTE) employees
- Your average employee salary is about $50,000 per year or less
- You pay at least 50% of your full-time employees’ premium costs
- You offer coverage to your full-time employees through the SHOP Marketplace. (You don’t have to offer it to dependents or employees working fewer than 30 hours per week to qualify for the tax credit.)
The tax credit is worth up to 50% of your contribution toward your employees’ premium costs (up to 35% for tax-exempt employers).
Higher benefits for smaller businesses
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.
- See all SHOP Marketplace tools, calculators, fact sheets, how-to guides, videos and other resources for employers.
- Contact the BAG Call Center at 1-800-223-3886 weekdays from 9 a.m. to 5 p.m. CT.
- Register for a U.S. Small Business Administration “Affordable Care Act 101” webinar.