Of the 1.4 million to 4.4 million small businesses the Government Accountability Office estimated to be eligible for the tax credit, merely 181,000 small businesses claimed the Small Employer Health Insurance Tax Credit in 2014, according to The Business Journals.
Here are five things to know:
1. Businesses with less than 25 employees with an average wage less than $50,000 are eligible for the tax credit if the employer covers at least 50 percent of the cost of individual coverage for their employees.
2. Some companies argue the credit is too small when weighed against health insurance's overall cost.
3. In 2014, the Affordable Care Act required businesses to purchase insurance via a Small Business Health Options Program exchange to qualify for the tax credit. While the exchanges intended to provide small businesses a good deal, the exchanges were confusing.
4. Many small businesses employ too many people or pay too much to qualify for the tax credit. Some experts argue the ACA should increase the size standard to qualify for the tax credit because many legitimate small businesses do not qualify.
5. One expert argues the tax credit primarily benefits small businesses that are less inclined to offer employees health insurance.
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