Shop

[mkd1204]

Can someone help me break down the math of buying a plan on the SHOP vs direct through broker/carrier?

Let's say I'm paying $50k for my 5 employees and I qualify for 50% credit hypothetically if I bought through the exchange. What would be my savings in getting the credit vs getting the full $50k deduction?

 

[ABC]

Can someone help me break down the math of buying a plan on the SHOP vs direct through broker/carrier?

Let's say I'm paying $50k for my 5 employees and I qualify for 50% credit hypothetically if I bought through the exchange. What would be my savings in getting the credit vs getting the full $50k deduction?

The employer would get a $25K tax credit. The total premium would be deductible but I doubt the employer could double dip. The shop plan are just as expensive as off the exchange plans. So I don't see the point especially with a sliding tax credit scale.

 

[mkd1204]

The employer would get a $25K tax credit. The total premium would be deductible but I doubt the employer could double dip. The shop plan are just as expensive as off the exchange plans. So I don't see the point especially with a sliding tax credit scale.

Yeah that's what I'm trying to figure out. In the end what is actual dollar value benefit of getting the credit and partial deduction vs deducting the full amount of premium.

 

[kgmom219]

PUNT.

That's what I've been doing. Get them the numbers. In this case, you get a $25K tax credit. Instead of the current $50K deduction. My next statement is

"You need to speak with your accountant before we proceed"

We aren't tax advisers and shouldn't pretend that we are.

 

[ABC]

PUNT. That's what I've been doing. Get them the numbers. In this case, you get a $25K tax credit. Instead of the current $50K deduction. My next statement is "You need to speak with your accountant before we proceed" We aren't tax advisers and shouldn't pretend that we are.

I agree, the carriers are telling that they don't want to be competitive on the shop exchange. I am sure it has to do with the additional 3.5% tax the gov. Is charging them to operate.