SHOP / SMALL
BUSINESS TAX CREDIT
Small Business Health Options Program or SHOP helps small businesses and nonprofit organizations throughout Idaho provide health insurance to their employees. You don’t have to wait for an Open Enrollment period if you are eligible. Businesses can start offering SHOP coverage to their employees any time of year.
Note: Business owners with no employees can use the Marketplace for individuals and families to enroll in a health plan that best fits their needs. Learn more about coverage options for self-employed individuals here.
To offer Small Business Health Options Program (SHOP) health and/or dental insurance to your employees, your business or non-profit organization must meet four requirements:
- Have 1-50 full-time equivalent employees (FTEs)
- To qualify for SHOP, you must have at least 1 FTE employee other than owners, spouses, and family members of owners and partners.
- Offer coverage to all full-time employees
- Full-time employees generally work 30 or more hours per week.
- You don’t have to offer coverage to part-time employees — those averaging less than 30 hours per week — or seasonal workers. You can offer coverage to part-time employees if you choose.
- Enroll at least 70% of the employees you offer insurance to
- Employees with other health coverage aren’t counted as “rejecting” your offer.
- Have an office or employee work site within the state whose SHOP you want to use
Small Business Health Care Tax Credit
You may qualify for the Small Business Health Care Tax Credit if:
- You have fewer than 25 full-time equivalent (FTE) employees
- Your average employee salary is about $56,000 per year or less
- You pay at least 50% of your full-time employees’ premium costs
- You offer SHOP coverage to all your full-time employees. (You don’t have to offer it to dependents or employees working fewer than 30 hours per week to qualify for the tax credit.)
What amount of tax credit can you receive?
The amount of credit you receive works on a sliding scale. The smaller the employer, the bigger the credit.
The maximum credit is:
- 50% of premiums paid for small business employers
- 35% of premiums paid for small tax-exempt employers
- The credit is available to eligible employers for two taxable years
For more information about the Small Business Tax Credit, visit the IRS website or speak with a tax professional.
How to Apply and Enroll
Click here to download the Shop Application.
- Work with a Your Health Idaho-certified agent or broker to complete and submit your application to SHOP@yourhealthidaho.org with “SHOP request” in the subject line
OR mail the completed form to:
Your Health Idaho
P.O. Box 50143
Boise ID, 83705
- Your Health Idaho will assign you a SHOP number
- Shop and enroll in a plan directly with a participating carrier
- Use your SHOP ID and information from your insurance plan to claim the small business health care tax credit by filing form 8941 with the IRS