Abel Insurance Agency

Coverage for small businesses

Healthcare for Small Businesses

Oregon’s Small Business Health Options Program (SHOP) has not opened yet, but that does not mean small businesses in Oregon cannot offer affordable health insurance to their employees. Small employers in Oregon will continue to enroll in health coverage directly through the carriers with the help of their agent. And, if you have a small business with fewer than 25 full-time employees, you could be eligible for the Small Business Health Care Tax Credit.

Review the complete list of all certified medical and dental plans you can choose from for coverage. Remember, you must choose one of these plans to be considered for the Small Business Health Care Tax Credit.

Small Business Health Care Tax Credit

To qualify for the tax credit, all of the following must apply:

  • You have fewer than 25 full-time equivalent (FTE) employees
  • Your average employee salary is about $50,000 per year or less
  • You pay at least 50% of your full-time employees' premium costs
  • You must enroll in an approved medical plan

The tax credit is worth up to 50% of your contribution toward your employees' premium costs (up to 35% for tax-exempt employers).

You don’t need to offer coverage to your part-time employees (those working fewer than 30 hours per week) or to dependents to qualify for the tax credit.

Higher benefits for smaller businesses

The tax credit is highest for companies with fewer than 10 employees who are paid an average of $25,000 or less. The smaller the business, the bigger the credit.

How to claim the Small Business Tax Credit:

  1. Purchase a certified medical or dental plan directly from a participating insurance carrier.
  2. Inform your insurance carrier that you want to apply for the tax credit – your agent can do this for you.
    Your insurance carrier will then contact the Oregon Health Insurance Marketplace to request a letter confirming that the plan you purchased is certified.
  3. Receive confirmation letter from the Oregon Health Insurance Marketplace.*
    The Oregon Health Insurance Marketplace will send the letter to you, your agent, and your insurance carrier.
  4. File the confirmation letter with your taxes when applying for the small business tax credit.

*Note: The Oregon Health Insurance Marketplace does not determine eligibility for the IRS Small Business Health Care Tax Credit; we only confirm that the plan purchased is certified.

Health Insurance for More Oregonians

Abel Insurance Agency is here to help guide you and your employees through the enrollment process. There is NO additional cost to utilize the assistance of an agent! Contact us today to schedule an appointment with one of our licensed agents. For more information on how to qualify for tax credits, contact a CPA or a tax professional, or visit www.irs.gov/uac/Small-BusinessHealth-Care-Tax-Credit-for-Small-Employers.