Are you a small business owner considering whether or not to provide health insurance for your employees? Although it is not mandatory, offering health insurance benefits small business owners by:
- helping to attract and retain employees
- making the business eligible for a possible tax credit
In a recent post on this site, we provide a detailed explanation of how the small business tax credit for health insurance works.
Estimate Your Company’s Tax Credit
The government provides a handy online tool to estimate your company’s small business tax credit for health insurance.
Before setting out to use the calculator, gather the following information:
- Your company’s tax status — exempt or non-exempt
- Number of full-time and part-time employees
- The hours worked per week by part-time employees (it may be helpful to have a list, as the calculator tool offers the option of entering hours by employee)
- Wages and taxes you paid (available from wage and tax forms)
- Insurance premiums you paid last year (both health and dental)
Click here to access the Estimator.
The tool will provide you with an estimate of your tax credit, based on the information you enter.
Purchase Coverage on SHOP
If your business is eligible for a tax credit, you must purchase your group coverage through the Small Business Health Options Program (SHOP) Marketplace in order to actually get the credit.
If your business is located in Maryland or the District of Columbia, you can enroll through your state’s marketplace. If your business is located in Virginia, you will need to complete a paper application and go through an agent or broker to purchase your group plan. Click here to access the paper SHOP application.
Virginia Medical Plans Can Help
Whether your business is in Maryland, Virginia, or the District of Columbia, Virginia Medical Plans can help you get started. When we assist small businesses with their group coverage, we are available throughout the life of your policy to help with enrollment, claims, and other administrative issues. We often will meet with your employees to explain coverage options and walk them through the enrollment process. All at no extra cost to the business owner.
Give us a call or send us an email today!