Idaho Life Producer Practice Exam

To qualify for health care tax credits through the SHOP Marketplace, an employer must have fewer than how many employees?

1. 20 employees

2. 25 employees

3. 50 employees

4. 75 employees

The correct answer is: 25 employees

An employer must have fewer than 25 employees to qualify for health care tax credits through the SHOP (Small Business Health Options Program) Marketplace. This rule is designed to ensure that small businesses can access affordable health insurance options while also incentivizing the provision of such coverage to employees. The tax credits are available to help offset the cost of providing health insurance, making it more viable for smaller employers. The threshold of 25 employees is significant because it distinguishes smaller businesses from larger organizations, which face different regulatory requirements and options in the marketplace. When an employer has 25 or more full-time equivalent employees, they either become ineligible for these specific tax credits or have different responsibilities regarding health insurance coverage under the Affordable Care Act. This policy aims to support small businesses, making it easier for them to offer health benefits and encourage employee health and financial protection.