The Affordable Care Act gives small businesses the possibility of offering group health 
insurance through the Small Business health options program (store) Marketplace. Some small businesses market participant are eligible to receive a tax credit. The tax credit for health care for small businesses, which can be obtained only by the SHOP market is only available for two consecutive tax years. Although the use of SHOP market was attractive for some small businesses, it is possible that the cover purchases by the market will fall after the expiry of two years of tax credit.
The SHOP market
The SHOP market supports small businesses in providing medical and dental care to their employees. According to the state, small businesses with fewer than 100 or 50 full-time equivalents (FTEs) are eligible to participate.
SHOP gives small businesses the flexibility and the ability to offer their employees health insurance plans from several insurers, as large companies are able to do so. A small business can determine how much money it wants to contribute to premiums and allow its employees to choose among different plans.
tax credit for health care for Small Enterprises
Small businesses involved in the SHOP market may be eligible for the tax credit for health care for small business this can help reduce the cost of insurance premiums. This tax credit is worth up to 50 percent of premium contributions of a small company (up to 35 percent for tax-exempt employers) and aims to encourage small businesses to provide insurance disease for the first time or maintain their current coverage. It is intended primarily for small businesses that hire low or moderate income workers
A small employer is eligible for the tax credit for health care for small businesses, if all the following conditions exist: .
- less than 25 full-time employees
- An average salary of $ 50 000 employees or less per year
- A contribution of at least half of costs of full-time employees of the premium
- employees enrolled in coverage by the market SHOP
These tax credits are available only for two consecutive fiscal years. For many companies that have used the SHOP market and benefited from these tax credits, their two-year period to an end. The tax credit was a major incentive for small businesses to use SHOP market. However, the Government Accountability Office of the United States found that the inclusion SHOP market was lower than expected, partly because of the administrative complexity of collecting data on employees and the calculation of tax credit . It is possible that many companies will find the excessive administrative burden now that they no longer receive the subsidy, leading to a drop in participation SHOP market.
Conclusion
The SHOP market was created to provide small businesses with flexibility and more options when providing health care coverage to their employees. The tax credit for health care of small businesses has led employers to seek a small business health insurance coverage in the SHOP market. But the two-year limitation on credit can now drive some small businesses to file Store and consider other options for small insurance company's health.
Have you enrolled in a SHOP plan and received a grant? Let us know in the comments section below!
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