Small Business Health Insurance
Tax Credits
If your Florida business has fewer than 25 employees, you could qualify for a federal tax credit worth up to 50% of your health insurance premium contributions. Here's how it works.
Eligibility Checklist
To qualify for the Small Business Health Care Tax Credit, your business must meet all four criteria:
Fewer Than 25 Employees
You must have fewer than 25 full-time equivalent (FTE) employees working for your business.
Average Wages Below $56K
The average annual wages paid to your employees must be less than $56,000 per FTE employee.
Pay 50% of Premiums
You must pay at least 50% of the health insurance premium for each enrolled employee.
Use SHOP Marketplace
You must purchase coverage through the Small Business Health Options Program (SHOP) marketplace.
How Much Could You Save?
The tax credit amount depends on your business size and average wages.
| Business Size | Avg. Annual Wage | Tax Credit | Notes |
|---|---|---|---|
| 5 employees | $35,000 | Up to 50% | First two consecutive years |
| 10 employees | $40,000 | Up to 35% | Tax-exempt employers: up to 25% |
| 20 employees | $50,000 | Phased | Gradually decreases as wages increase |
Important: First Two Years Only
The maximum 50% credit is available for two consecutive taxable years beginning with the first year you claim it. After that, a reduced credit may still be available for certain tax-exempt employers.
How to Claim the Tax Credit
Enroll your employees in a qualified health plan through the SHOP marketplace.
Pay at least 50% of each enrolled employee health insurance premium.
File IRS Form 8941 with your federal tax return to calculate your credit.
Claim the credit on your business tax return (or as a refundable credit for tax-exempt employers).
Check Your Eligibility
Fill out the form below and we'll help you determine if your business qualifies for tax credits.
Serving Businesses Across the Nation
FLC Insurance Services and our licensed insurance agents help small and mid-sized businesses find the right group health coverage at an affordable price. We're directly licensed in 24 states and serve the rest of the country through our affiliate agent network.