An employer may qualify for health care tax credits through SHOP marketplace if that employer has fewer than how many employees?

• A. 25
• B. 10
• C. 50
• D. 100

Answer: (A)

Small employers qualify for SHOP health care tax credits based on their size, counted in full-time equivalents. The limit is 25 or fewer full-time equivalent employees, so an employer with up to 25 FTEs can qualify for the credit, assuming other requirements (like offering SHOP coverage and contributing to premiums) are met. To determine FTEs, combine the hours of part-time staff (convert those hours to full-time equivalents, typically by dividing part-time hours by 120 per month) and add the number of full-time employees; if the average over the year is 25 or fewer, the employer meets the size threshold. Larger employers exceed this limit and do not qualify.