Small business · Plan setup
Employer contribution and participation rules for small group plans
Carriers can require you to pay a minimum share and to enroll a minimum share of eligible employees. Here’s what federal rules say and where the exceptions are.
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- Carrier rules vary
- Nov 15–Dec 15 window
- 50% for the tax credit
Check my group’s eligibility
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What the federal rule says
- Insurers generally must sell small group coverage to employers that apply, but when a group can’t comply with employer contribution or group participation rules allowed under state law, the insurer may restrict coverage to the November 15 to December 15 window.[1]
- Enrollment received from the 1st to the 15th of a month must start no later than the 1st of the next month; from the 16th on, no later than the 1st of the second month.[1]
Contribution: what other employers pay
| Private industry, March 2026 | Employer share, single | Employer share, family |
|---|---|---|
| All workers | 80% | 69% |
| Businesses with 1 to 49 workers | 79% | 64% |
| East North Central (includes Michigan) | 79% | 72% |
BLS National Compensation Survey.[2,3]
Participation: what to expect
In private businesses with 1 to 49 workers, 55% of workers had access to a medical plan and 34% participated, a take-up rate of 63%.[4] Carriers set their own participation tests, so get the carrier’s written rule before you plan around it.
The tax credit has its own 50% rule
To qualify for the small business health care tax credit, you generally must pay a uniform percentage of at least 50% of the premium for each enrolled employee.[5] See the Form 8941 guide.
If you can’t meet the minimums
- Enroll in the November 15 to December 15 window for a January 1 start.[1]
- Consider a QSEHRA if you aren’t an applicable large employer and don’t offer a group plan.[6] See QSEHRA.
- Consider an ICHRA. See ICHRA vs. group cost.
Sources
- 45 CFR 147.104, Guaranteed availability of coverage (eCFR). https://www.ecfr.gov/current/title-45/subtitle-A/subchapter-B/part-147/section-147.104
- BLS, Employee Benefits in the United States, March 2026, Table 3: Share of premiums paid, single coverage. https://www.bls.gov/news.release/ebs2.t03.htm
- BLS, Employee Benefits in the United States, March 2026, Table 4: Share of premiums paid, family coverage. https://www.bls.gov/news.release/ebs2.t04.htm
- BLS, Employee Benefits in the United States, March 2026, Table 2: Medical care benefits, access and participation. https://www.bls.gov/news.release/ebs2.t02.htm
- IRS, Instructions for Form 8941 (2025). https://www.irs.gov/instructions/i8941
- IRS, Publication 15-B (2026), Employer’s Tax Guide to Fringe Benefits. https://www.irs.gov/publications/p15b
Checked October 16, 2026. 2027 Marketplace plans and final 2027 rates aren’t published yet; we’ll update this page when they are.
Frequently asked questions
Is there a legal minimum employer contribution in Michigan?
Federal rules don't set one. Insurers may apply contribution and participation rules allowed under state law; we check the carrier's written rule for your group.
What if my group can't meet participation requirements?
Insurers can limit those groups to an annual November 15 to December 15 enrollment window, so you can still enroll then.
How much do small employers usually pay?
In March 2026, private employers with 1 to 49 workers paid 79% of single-coverage premiums and 64% of family premiums on average, per BLS.
Will you sell my information?
No. Your information goes to Nexus Benefit Solutions only and is never sold.