Health insurance for small business owners
A small business owner with no employees counts as self-employed and can use the individual Marketplace. An owner with even one employee other than a spouse, family member, or co-owner may be able to use the SHOP Marketplace to cover the team. Sam Clayland reviews your head count, entity type, and budget on a free 25-minute call.
What makes your situation different
Head count decides which door you use
HealthCare.gov draws the line at employees. No employees means self-employed and the individual Marketplace. Even one employee other than yourself, a spouse, family member, or owner may open the SHOP Marketplace for you and your staff.
Your entity type changes the paperwork
For a more-than-2% S corporation shareholder, the IRS says premiums paid or reimbursed by the S corporation are shown as wages on your W-2. If the policy is in your name and you pay it yourself, the corporation must reimburse you and report it, or the plan is not considered established under your business.
Employees paying too much is a real category
Sam's client list includes employees paying too much for coverage at work. If your team is unhappy with what is offered, it is worth comparing your current plan with the alternatives, including what each one leaves out.
Sam to confirm: this page matches how you work with these clients, and add a real example
What Sam will ask
- How many people work for you, and how many hours?
- Are you a sole proprietor, an LLC, or an S corporation?
- What do you and your staff have today?
- What can the business realistically contribute?
Handy, but not required
- Your current plan and renewal notice
- A rough staff count and ages
- Your entity type
Common questions
Am I self-employed or an employer for health insurance?
HealthCare.gov says you are self-employed if your business has no employees. With even one employee other than yourself, a spouse, family member, or owner, you may be able to use the SHOP Marketplace.
How do S corporation owners handle health insurance premiums?
The IRS says premiums for a more-than-2% shareholder are paid or reimbursed by the S corporation and shown as wages on the Form W-2. Ask your tax professional to set this up correctly.
Not you? Other kinds of work:
1099 contractors · people who work with their hands · restaurant owners and staff · real estate professionals