written by Patti Stoner

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Phase 1 is effective for 2010-2013. Here are the highlights:

  • Employer must pay at least 50% of the health insurance coverage costs for employee
  • Small employer is 25 or less full-time equivalents (FTEs) = 40 hours per week = 2,080 hours per year
  • Average annual wages less than $50,000

Click here to view a chart with all details for phase 1 and sliding scale to illustrate available partial credit. Basics for small employer health insurance tax credit chart

Phase 2 is effective January 1, 2014. Here are the highlights for phase 2:

  • Credit ONLY available for employers purchasing insurance through the Small Business Health Options Program (SHOP) Exchange
  • Maximum credit increases to 50% of health insurance costs
  • Small employer can only qualify for two years for this credit beginning in 2014

Contact us if you have any questions about the Small Employer Health Insurance Tax Credit 417-881-0145.