The Small Business Health Options Program is the ACA marketplace for small-employer coverage. It is the path through which an eligible small employer can qualify for the small business health care tax credit.
SHOP lets a small employer offer ACA-compliant group coverage, potentially claim the small-business tax credit (up to 50% of premiums for under-25-FTE firms), and give employees pre-tax, employer-subsidized coverage.
A business generally qualifies if it has 1 to 50 full-time-equivalent employees, offers coverage to all full-time staff, and meets minimum participation and contribution rules (waived in the year-end window). At least one W-2 employee is typically required.
SHOP is the ACA’s Small Business Health Options Program; the marketplace where employers with 1 to 50 full-time-equivalent employees can offer group coverage and may qualify for the small-business tax credit.