South Carolina Life and Health Practice Exam

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

1. 10

2. 15

3. 25

4. 50

The correct answer is: 25

To qualify for health care tax credits through the Small Business Health Options Program (SHOP) Marketplace, an employer must typically have fewer than 25 full-time equivalent employees. The tax credits are designed to assist small businesses in providing health insurance to their employees. However, the threshold is specifically aimed at small businesses that meet this employee criterion. Employers with 25 or fewer employees may still receive some level of tax credit if they provide coverage to their employees, allowing them to benefit from the program designed to lower the cost of providing health insurance. In the context of the choices presented, 25 is the most relevant figure related to the criteria for tax credits in the SHOP Marketplace. Thus, businesses with more than 25 employees would be ineligible for these specific tax credits. Understanding this threshold is crucial for small business owners looking to navigate the health insurance options available to them and their employees.