Your Source for Health Reform

Topic: Small Business Tax Credits



Tax credits are available under the ACA to help small business owners provide coverage for their employees. To be eligible, the business must have fewer than 25 FTE employees and cover at least 50% of employee premiums.


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SHOP Participation Rate Rules

To purchase health insurance through the SHOP, a minimum percentage of employees must enroll in the plan. In a October 2014 fact sheet, the Centers for Medicare and Medicaid Services outlines the steps for calculating a small business’ participation rate.

Enrollment Issues for Small Businesses

This March 2014 information sheet and frequently asked questions from the Robert Woods Johnson Foundation addresses common concerns for small employers as they explore health insurance options for their workers.

Top 5 ACA Facts for Small Business

This November 2014 webinar from the Small Business Health Collaborative gives an overview of the healthcare reform law and explains how both individuals and small business owners can get group health insurance and qualify for financial assistance.

The Small Business Healthcare Tax Credit

Employers purchasing health insurance in on the SHOP Marketplace may be eligible to receive a tax credit that covers up to 50% their contribution to employee premiums. This 2014 fact sheet from the Small Business Health Collaborative explains the eligibility requirements and gives tips on how to determine if your business qualifies.

ACA Provisions for Small Businesses

This roundup from the Small Business Administration details key provisions of the Affordable Care Act for employers with fewer than 25 employees, with links to essential FAQs, fact sheets, temporary guidance documents, and final rulings, published in the Federal Register. Topics covered include the SHOP, Small Business Tax Credit, employer notices to employees, medical loss ratio rebates, and other aspects of ACA implementation.

Need to Know ACA Info For Small Business

From the ACA definition of small employer to financial assistance on the SHOP, this June 2014 article from the Healthcare Trends institute outlines information critical to making an informed choice regarding employee health benefits.

Healthcare Tax Credit for Small Businesses

This fact sheet from the IRS details information for small business owners regarding the tax credit available under the ACA to help to pay for employee premiums. Eligibility and the benefits of the tax credit are discussed.

Small Business Tax Credit Q&A: FTEs and Average Annual Wages

The IRS recently issued this set of questions and answers to clarify definitions of types of employees and average annual wages. It also answers questions about tax credits, employee hours of service, and who is or is not an employee for purposes of tax credit eligibility.

ACA Tax Provisions

This mini-site from the IRS addresses how the Affordable Care Act tax provisions will affect individuals and families, employers, and organizations. The law’s tax-related provisions include financial assistance options for individuals and families, including the premium tax credit, the individual shared responsibility provision and exemptions from that provision, as well as provisions for employer and others. The IRS administers the tax provisions included in the law.

Small Business Provisions of the ACA

This July 2013 fact sheet from the federal Small Business Administration details the provisions of the Affordable Care Act that will help small businesses by lowering premium cost growth and increasing access to quality, affordable health insurance. It also linkts additional resources from the IRS, the Department of Labor, and HealthCare.gov.

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