Georgia Navigator Practice Exam

What is one condition for a small business to receive a tax credit for health insurance?

1. Employ fewer than 100 employees

2. Provide insurance to all employees over 30

3. Have at least 1 employee on payroll

4. Be located in urban areas only

The correct answer is: Have at least 1 employee on payroll

A small business can qualify for a tax credit for health insurance if it has at least one employee on payroll besides the business owner. This is essential because the tax credit is designed to encourage small businesses to provide health insurance to their employees. By having at least one employee, the business demonstrates that it is operating beyond just the owner, which aligns with the intent of providing coverage to help support a workforce. While the other conditions listed might touch on aspects of health coverage or employee eligibility in broader discussions, they do not directly pertain to the basic requirement of having an employee who could benefit from health insurance. Hence, the presence of at least one employee is a foundational criterion for the tax credit eligibility.