CoveredCA tax credits for small business- explained in a nutshell
Christine Glaesman, ???? REBC, LPRT
Small Business Employee benefits & Medicare specialist. Helping business owners and Medicare recipients save time and money on their health insurance.
CoveredCa Tax Credits have been a bit of a mystery for individuals and business owners since their inception in 2014 and a lot has been learned about them.
Here’s the low down:
Covered CA tax credits last for two years then the small business pays for the full cost of the insurance thereafter.
CoveredCA for small business (otherwise known as SHOP) may have a more limited carrier and plan selection than the private market. (Example, some areas only have two carrier options)
Tax credits are only available to those businesses that qualify. You can learn more about the qualifiers at https://www.coveredca.com/forsmallbusiness/taxcredit/
There is a calculator also located on this same page.
In a nutshell, the higher percentage that the employer pays towards the premium and the lower the wages for the employee (the range for qualification is between $20K-40K annually) the higher the tax credit for the employer.
If you would like help with finding out if you qualify as a small business please send me a message and I will walk you through it :)