Eligible employers may claim a credit for Small Employer Health insurance premiums. This credit is 35% of the premiums paid by the employer each year. this credit increases to 50% in 2014. a qualified small business employer is a business with no more than 25 full-time equivalent (FTE) employees with an average annual wage of no more than $50,000. certain individuals cannot be included in the FTE computation, and include partners, self-employed persons, seasonal workers, greater than 2% shareholders in an S Corporation, a greater than 5% owner in a C corporation, or any related party. These excluded employees are generally able to claim a credit on their personal return under the section 2042 deduction for self-employed health insurance on their form 1040.