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In Kentucky, no small business is required to provide insurance coverage. Those companies that have 50 or fewer people will not face any penalties if they do not have insurance coverage for their workers. If the small business has 25 or fewer employees, they may actually be able to benefit from tax credits through Kynect, which can help to cover the cost of the insurance. Those businesses that have 50 or fewer full-time employees (or full-time equivalent) will be able to enroll through Kynect SHOP.
What Is SHOP
SHOP is the Small Business Health Options Program. Business owners will be able to apply online through Kynect.ky.gov. In order to be eligible for this program, the employer will need to have 50 or fewer employees. You also need to offer all of your full-time employees (this means an average of 30 or more hours per week) coverage in the health insurance plan. You also need to have a principal business address in Kentucky, or have a worksite in Kentucky where you will offer coverage to the full-time employees.
Small businesses can fill out an application, which will include their company information as well as information about each of the employees they will cover. The employee information required includes the name, SSN, gender, date of birth, phone number, type of employees, hire date, whether they are a smoker or tobacco user, and their address. Click here to learn more.
Participation Requirements & Tax Credits for Small Business
Small businesses that want to participate and provide healthcare coverage to their employees will need to meet certain requirements. One of the benefits of going through SHOP, the Small Business Health Options Program, is that it does not have a fixed open enrollment period. The employers will be able to set their own open enrollment period any time of the year they wish. In addition, you may be able to have your company qualify for small business tax credits, which can help you save on the overall cost of providing healthcare coverage for your employees.
What Are the Requirements?
To be eligible for SHOP, the employer must have 50 or fewer full-time employees. In 2016, this number will increase to 100 employees. The employer also needs to be willing to provide coverage for all of their full-time employees. If they have a principal business address located in Kentucky, they need to offer coverage to all full-time employees. If they have a worksite in Kentucky, even if it is not their primary business location, they need to offer coverage to all full-time employees.
The employers will then be able to fill out their application form so they can start to look for plans available through SHOP.
Small Business Tax Credits
One of the biggest benefits for small businesses that use SHOP is the potential for tax credits. These credits can help to reduce the cost of providing coverage for the employees. However, not all companies will be able to meet the requirements. Let’s look at those requirements to see if your business might quality. Click here to learn more.