Small businesses with 50 or fewer employees can now purchase health insurance for their employees through the Small Business Health Options Program (SHOP). SHOP is a new program that simplifies the process of buying health insurance for your small business. You control the coverage you offer your employees and how much you pay toward their premiums. After you choose the health insurance coverage that works for your business, your employees can sign up for it online through the SHOP Marketplace.
Small businesses are also eligible for a health care tax credit if they have 25 or fewer full-time equivalent employees (an employer with fewer than 50 half-time workers may also be eligible), pay employees an average of less than $50,000 per year and contribute at least 50 percent toward employees premium cost. The contribution requirement also applies to add-on coverage such as vision and dental insurance. To calculate the small business health care tax credit use Form 8941.