What is SHOP?
SHOP is Small Business Health Options Program that is developed for businesses with 1-50 eligible employees (eligible employees work an average of 30 hours). It is a market place that will allow employers to compare a variety of qualified plans from private insurance companies.
Small business owners may qualify for at tax credit to help offset the contribution to employees' premium. There is a tax credit for businesses with 1- 25 full time equivalent employees who make an annual estimated salary of $50,000 or less. To qualify for a tax credit, employers must contribute to at least 50% of employees premium cost.