Question

What is the maximum percentage of the paid health insurance premium for which an eligible non-profit small employer could be eligible as a tax credit in 2020?

Answer 1

The only way to take credit for health insurance paid is to enroll in small business health option plan (SHOP) plan for this the following conditions must satisfy

1. Full time employees will be less than 25 employees

2. Employee salary of your business will be $50000 or less in a year

3. Employer must pay 50% premium of employee cost

4. The above SHOP plan must cover for only full time employees and not for dependents or employees work for < 30 hours in a week

if you follow the above conditions then you are eligible to take credit of health insurance paid

Maximum eligibility

The maximum credit eligible for non profit business employer is 35% in case of other than non profit employer 50% is eligible