What is the SHOP Marketplace?

The SHOP Marketplace is the federal government's official website for information and determination of small business health care tax credits. For 2018 coverage, employers and employees must complete the enrollment process through UPMC Health Plan by contacting Inside Sales at 1-888-383-8762 or an agent/broker registered with the FF-SHOP.

How does the tax credit work?

Employers may qualify for health care tax credits if they have fewer than 25 full-time equivalent employees making an average of about $50,000. Also, to qualify for health care tax credits, the employer must pay at least 50 percent of their full-time employees’ premium costs and must offer coverage to their full-time employees through the SHOP Marketplace.

For tax years beginning in 2014 or later, the maximum credit increases to 50 percent of premiums paid for small business employers and 35 percent of premiums paid for small tax-exempt employers. To be eligible for the credit, a small employer must pay premiums on behalf of employees enrolled in a qualified health plan offered through a Small Business Health Options Program (SHOP) Marketplace or qualify for an exception to this requirement. For tax years beginning after 2013, the credit is only available for a two-consecutive tax year credit period. Premium payments must be made directly to UPMC Health Plan to effectuate coverage.

To claim the credit, employers must complete IRS Form 8941 and attach it to their annual tax return. Instructions on how to complete IRS Form 8941 are available; click here.