Many small business owners search and compare different health insurance plans that is right for the business as well as for their employees.
However, many business owners are not familiar with what benefits are available for them, and they often end up paying more than they should.
Covered California offers Small Business employers several different health plans and depending on the number of employees you can be qualified for a federal tax credit up to 50%.
Definition of Small Business
Small business with at least 1 full-time equivalent employee up to 100 is considered Small Business.
If you have more than 50 employees, you would be required to offer health benefits by law.
We would be covering for business with 50 or less employees in this case.
Tax Credit Eligibility
To qualify for the tax credits there are few requirements
- Number of Employee: Small business must have less than 25 full-time equivalent employees besides the owner and immediate family members. Full-Time Equivalent (FTE) employees is not an actual employee but a calculation involving all part-time and full-time employees who worked during the year if the employer did not exist in the prior year. If you have only part-time employees, You can count 2 part-time employees as 1 full-time. You can use the FTE calculator to determine your eligibility.
- Responsible Premium: Business must pay at least 50 % of the health plan premium cost for all employees.
- Salary Limit: Your employees must have an annual average wage of less than $56,000 per year. Typically it’s $25,000 per employee in salary per year.
- Small business must purchase health insurance through Covered California Small Business (CCSB) to be eligible for the tax credits.
Group Health Plan Options
You can choose from a variety of small business health plans, including HMO, PPO, EPO, and Health Savings Account-compatible plans.
They cover all of the essential health benefits required by the Affordable Care Act (ACA), including emergencies, counseling services, preventive care and more.
You can also qualify bundling discounts with more than one small group plan. For example, you can save up to 5% when you purchase a new ACA dental plan along with
vision, life and/or disability.
Looking for a Group Health Insurance Broker?
Skyline Benefit is an independent health insurance broker headquartered in Orange County, California.
Skyline Benefit currently works with various small and medium businesses in California and Arizona.
Our group health advisors can go over your business’s medical needs and budget, and help you choose the best group health insurance plan for you.
Call today and discuss your group health insurance options. (714) 888-5116.