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rakhi.v, Tax Attorney
Category: Tax
Satisfied Customers: 4545
Experience:  Have graduated in Law with specialization & emphasis in Financial Laws and has working experience of over a decade.
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I have less than 25 employees in the state of Texas. What is

Customer Question

I have less than 25 employees in the state of Texas. What is the amount I can write off of my taxes? I pay 100% for the employee only cost. Can I write off 100% of the premium I pay.. I am not obtaining benefits from the SHOP.
Also, if I were to participate in the SHOP to obtain group insurance coverage for my employees, would I as an employer receive a subsidy if I met the requirements of less than 25 emps, and the average pay is 50k or less?
I am trying to figure out the best way to go here. Thank you
Submitted: 1 year ago.
Category: Tax
Expert:  rakhi.v replied 1 year ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

Yes, you will be able to deduct 100% of the premium paid. So far as subsidy is concerned, certain employers with fewer than 25 workers are eligible for federal tax credits. To qualify, the company has to cover at least half of the premium for all of its employees, and also have average wages of less than $50,000.

I am sure this would help. I wish you good luck.

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