Health Insurance for a Business With Fewer Than 10 (or Just 1) Employees
Whether you have a few employees or it's just you, we'll help you find out what you actually qualify for.
Your Size Changes What You Qualify For
Eligibility rules shift depending on whether it's just you or you have staff on payroll.
Just You?
If you're a sole proprietor with no other employees, group coverage and ICHRA generally don't apply to you directly. Individual coverage, sometimes with a tax deduction, is typically the path.
A Few Employees?
Once you have at least one employee who isn't an owner or their spouse, options like ICHRA and small group coverage generally open up.
Not Sure Which You Qualify For?
These rules genuinely depend on your specific setup. Your advisor can walk through your situation and tell you exactly what applies.
The Smaller You Are, the Bigger the Credit Can Be
The Small Business Health Care Tax Credit scales with your business size, and employers with fewer than 10 employees paid modest average wages can qualify for its highest tier. It's easy to miss if you're comparing options on your own, and your advisor can help you find out if you qualify.
What Applies to You
| Just You | A Few Employees | |
|---|---|---|
| Coverage path | Individual & Family marketplace plan | ICHRA or small group coverage |
| ICHRA eligibility | Not eligible, owners aren't common-law employees | Generally eligible once you have a non-owner employee |
| Small Business Health Care Tax Credit | Not applicable | May qualify, higher tier for smaller teams with modest average wages |
| Self-employed premium deduction | May be able to deduct premiums on your personal return | Handled differently as a business expense |
| Advisor support available | Yes, comparing individual plans | Yes, setting up and managing group or ICHRA options |
Frequently Asked Questions (FAQs)
Can a business with just one employee get small group health insurance?
Generally no, not in the way people expect. Federal rules typically treat coverage for a business of one person, meaning just the owner with no other employees, as individual market coverage rather than small group coverage. In practice, this usually means shopping for a plan through the individual marketplace rather than a small group policy. Your advisor can help you understand what actually applies to your situation.
Am I eligible for ICHRA if it's just me, with no other employees?
Generally no. Sole proprietors aren't considered common-law employees of their own business, so ICHRA typically doesn't apply until you have at least one employee who isn't an owner or their spouse.
How do I know if I qualify for the Small Business Health Care Tax Credit?
It depends on your number of full-time equivalent employees, average wages, and how much of the premium you cover. Because these thresholds can change, the most reliable way to find out is to talk it through directly with your advisor.
Ready to see actual coverage options? If it's just you, explore Individual & Family Insurance. If you have a few employees, compare ICHRA plans for small businesses or Small Group Health Insurance to see what fits your team.
Meet Our Small Group and ICHRA Advisors
Ready to Talk Through Your Options?
Let's go over your situation, whether it's just you or a growing team, and see what actually fits, at no added cost to you.
Disclosures
We are compensated by the insurance carriers for policies you choose through us. There is no direct cost to you. Compensation may vary by carrier and product. Information on this page is for educational purposes and does not constitute legal, tax, or accounting advice. Please consult your professional advisors about your specific situation. Tax treatment of ICHRA reimbursements can vary by employer and employee. We are licensed to advise clients in Pennsylvania, New Jersey, and Delaware. Contact us to confirm availability in other states.
