A Florida business with only one W-2 employee faces a specific challenge: the standard small group market requires at least 2 enrolled employees. But that doesn't mean you have no options. Depending on your business structure and goals, a QSEHRA, ICHRA, or a specifically structured group plan may all be viable paths to covering your single employee — and possibly yourself.
Florida small group carriers require at least 2 enrolled employees to issue a group health plan. If your business has only one W-2 employee (not the owner), you cannot access the small group market unless one of these conditions is met:
Sole proprietors and single-member LLC owners taxed as sole proprietors typically cannot count themselves as employees for group plan purposes.
| Option | Best For | Monthly Cost Range |
|---|---|---|
| QSEHRA | Under 50 FTE businesses wanting simple, fixed reimbursement for employee's individual plan | Any amount up to $529/month individual limit |
| ICHRA | Any size business; more flexibility than QSEHRA; no contribution cap | Any amount set by employer |
| Wage increase + individual plan | Simplest approach; employee shops their own coverage | Equivalent cash, subject to full payroll taxes |
A QSEHRA allows you to reimburse your single W-2 employee tax-free for their individual marketplace or other qualifying coverage — up to $529/month (individual) or $1,067/month (family) in 2026. The employee keeps their own marketplace plan (including any ACA subsidies they qualify for, reduced by the QSEHRA amount). You get a full business deduction for the reimbursement. Setup is simple and typically handled through a platform like PeopleKeep or Take Command Health for $15–$25/month.
Possibly — if your business structure makes you a W-2 employee (S-Corp or C-Corp owner with W-2 wages), then you plus one additional W-2 employee may meet the 2-person minimum for a Florida small group plan. Carrier rules vary — some will issue a group plan to a 2-person S-Corp; others require at least one non-owner enrollee. A broker can identify which carriers will cover your situation.
Generally yes. A $400/month QSEHRA reimbursement is tax-free to the employee and fully deductible for the employer, with no FICA taxes on either side. To deliver equivalent after-tax value as a wage increase (assuming 22% income tax + 7.65% FICA), you would need to pay approximately $580/month more in gross wages. The QSEHRA delivers more value at lower gross cost.
You must extend the same QSEHRA offer to all eligible employees. If you decide to transition to a group health plan when you have 2+ employees, you would need to terminate the QSEHRA and set up the group plan — you cannot offer both to the same class of employees simultaneously.
Whether you have 1 employee or 50, we can find the right fit.
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