Although the Patient Protection and Affordable Care Act does not require small businesses to purchase group healthcare insurance for their employees, there is a tax credit available if they choose to do so. Specifically, a tax credit is available to employers with 25 or fewer full-time or full-time equivalent employees who offer health insurance to employees. In order to qualify, the average wage of the employees must be $50,000 or less (excluding the owners) and the employer must pay at least half the cost of coverage. “Full-time” is defined as 30 hours a week or 130 per month. “Full-time equivalent” is calculated by adding up the part-time employee hours per month and dividing by 120. The tax credit can be up to 50% of the amount the employer pays paid towards the premium. Further, the insurance must be purchased through the California SHOP insurance exchange program here.