Updated July 2026 · UtahPlanFinder.com — Licensed Health Insurance Producer (NPN #21249133)

Small Business Health Insurance for Accounting and Tax Firms in Herriman, Utah

Small accounting and tax firms in Herriman, Utah, can deduct 100% of group health insurance premiums as a business expense.
Herriman is part of Utah Rating Area 3, where 5 carriers offer marketplace plans, including Select Health and Regence BlueCross BlueShield of Utah.
Owners and employees in Utah have access to HMO and EPO plans on HealthCare.gov; PPO plans are not available on-exchange for 2026.
Herriman's median household income is $122,650, significantly higher than Salt Lake County's $97,494, influencing subsidy eligibility for individual plans.
Utah expanded Medicaid in 2020, covering adults with incomes up to 138% of the Federal Poverty Level.

For accounting and tax firms in Herriman, Utah, navigating health insurance options for owners and employees requires a strategic approach. Whether you're a solo practitioner, a small boutique firm, or a growing team, understanding the local marketplace, tax implications, and plan structures is crucial. In Herriman, firms can choose between traditional group plans, individual marketplace plans with potential subsidies, or alternative arrangements like Individual Coverage Health Reimbursement Arrangements (ICHRAs). The best choice often depends on the firm's size, budget, and employee demographics, with significant tax advantages available for both employers and self-employed individuals.

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What Are the Health Insurance Options for Accounting and Tax Firms in Herriman?

Small accounting and tax firms in Herriman have several pathways to secure health coverage, each with distinct advantages and considerations. The primary options include traditional group health insurance, individual plans purchased through HealthCare.gov (Utah's federal marketplace), or structured reimbursement models like ICHRAs. Traditional Group Health Plans: These plans are purchased by the firm for its employees. They typically require a minimum number of participating employees (often 70% or more of eligible staff) and offer a range of benefits, often with the employer contributing a significant portion of the premium. For an accounting firm, offering a group plan can be a strong tool for employee retention and recruitment, especially in a competitive market. Premiums paid by the employer are generally 100% tax-deductible as a business expense. Individual Marketplace Plans: Owners and employees can purchase individual plans through HealthCare.gov. For individuals and families with incomes between 100% and 400% of the Federal Poverty Level (FPL), premium tax credits (subsidies) are available to reduce monthly costs. Cost-sharing reductions may also be available for those with lower incomes who choose Silver-tier plans. This option provides flexibility for employees to choose a plan that best fits their personal health needs and budget. Individual Coverage Health Reimbursement Arrangements (ICHRAs): An ICHRA allows an accounting firm to provide employees with a tax-free allowance to purchase their own individual health insurance plans. The firm sets the allowance, and employees select a plan that meets their needs from the marketplace or off-exchange. This approach offers budget predictability for the firm and personalized choice for employees, while still providing tax advantages for the employer contributions.

Understanding Tax Implications for Health Coverage in Your Herriman Firm

The tax treatment of health insurance is a critical factor for accounting and tax professionals, as it directly impacts the firm's bottom line and the net compensation of employees.

Coverage Type	Tax Deduction for Firm	Tax Deduction for Employee	Key Benefit
Group Health Plan (Employer-Sponsored)	100% tax-deductible for employer	Employee premiums paid pre-tax (if applicable)	Significant business expense reduction, attracts talent
Individual Marketplace Plan (Employee-Purchased)	N/A (unless ICHRA)	May qualify for Self-Employed Health Insurance Deduction (IRC §162(l)) or Premium Tax Credits	Personalized choice, potential government subsidies
Individual Coverage HRA (ICHRA)	Employer contributions are tax-deductible	Employee receives tax-free reimbursements for premiums/medical costs	Budget predictability for firm, employee choice

For firms offering traditional group plans, the premiums paid by the employer are a business expense, reducing taxable income. This applies to firms in Herriman just as it does nationwide. For self-employed accounting professionals who are not eligible for other employer-sponsored coverage, the Self-Employed Health Insurance Deduction (IRC Section 162(l)) allows them to deduct 100% of health insurance premiums paid for themselves, their spouse, and dependents. This can be a substantial tax saving for solo practitioners in Herriman with a median income of $122,650.

With an ICHRA, the funds the firm provides to employees are tax-deductible for the firm and are received tax-free by the employee, provided the employee has qualifying individual health coverage. This makes ICHRAs a tax-efficient way to offer benefits without the complexities of a traditional group plan.

How Do ACA Plans Work for Small Businesses in Herriman, Utah?

The Affordable Care Act (ACA) significantly impacts how small businesses in Herriman can access health insurance, particularly through the individual marketplace on HealthCare.gov. Eligibility for Subsidies: For small business owners and their employees who purchase individual plans, eligibility for premium tax credits and cost-sharing reductions depends on household income relative to the Federal Poverty Level (FPL). For 2026, individuals and families earning between 100% and 400% FPL may qualify for premium tax credits. For a single individual in Utah, 400% FPL is approximately $60,240, while for a family of four, it's about $124,800. Given Herriman's median income of $122,650, many residents, including small business owners, may find themselves within these income brackets and qualify for assistance. Plan Types in Utah: In Utah, including Herriman, the marketplace primarily offers Health Maintenance Organization (HMO) and Exclusive Provider Organization (EPO) plans. It's important to note that PPO (Preferred Provider Organization) plans are NOT available on-exchange in Utah for 2026. This means that marketplace shoppers in Herriman will choose between the more managed care structures of HMOs and EPOs.

HMOs: Typically require you to choose a primary care provider (PCP) within the network and get referrals for specialists. They generally have lower premiums and out-of-pocket costs.
EPOs: Offer a broader network than HMOs and usually don't require referrals for specialists, but they generally won't cover out-of-network care except in emergencies.

Medicaid Expansion in Utah: Utah expanded Medicaid in 2020. This means that adults in Herriman with incomes up to 138% of the Federal Poverty Level (FPL) may qualify for Utah Medicaid. For a single individual, this threshold is approximately $20,783 annually. This is a critical safety net for individuals and small business owners with lower incomes, ensuring access to comprehensive, low-cost coverage.

Health Insurance Carriers in Herriman

For small businesses and individuals in Herriman, a variety of carriers offer plans within Utah Rating Area 3. In 2026, 5 carriers offer marketplace plans in Rating Area 3, which covers Davis, Salt Lake, Summit, Tooele, Wasatch counties. These carriers provide a range of HMO and EPO options to suit different needs and budgets. The confirmed local carriers for Herriman and Rating Area 3 include:

BridgeSpan Health Company
Imperial Health Plan of Utah
Regence BlueCross BlueShield of Utah
Select Health
University of Utah Health Plans

These carriers offer plans across various metal tiers (Bronze, Silver, Gold), allowing firms and individuals to select coverage based on their desired balance of monthly premiums and out-of-pocket costs. It's advisable to compare network coverages and prescription drug formularies when making a decision.

Herriman, Utah, situated in Salt Lake County, is a growing community with a population of 59,346, per U.S. Census Bureau ACS 2024 5-year estimates. The city's median income of $122,650 and a low uninsured rate of 2.8% reflect a relatively affluent and well-insured population. Salt Lake County, the parent county, has a larger population of 1,196,523 and is home to 10 acute care hospitals, including Holy Cross Hospital - Salt Lake and Intermountain Medical Center. This robust healthcare infrastructure within Rating Area 3 provides extensive access to care for residents and employees of accounting firms in Herriman.

Choosing the Right Plan for Your Accounting or Tax Firm

Deciding on the best health insurance strategy for your Herriman accounting or tax firm involves weighing several factors, including firm size, budget, and employee preferences.

Firm Profile	Recommended Approach	Key Considerations
Solo Practitioner / Owner-Only Firm	Individual Marketplace Plan or Self-Employed Health Insurance Deduction	Eligibility for premium tax credits based on personal income; maximize tax deduction via IRC §162(l).
Small Team (2-10 Employees)	ICHRA or Small Group Plan	ICHRA offers budget control and employee choice; group plans can attract talent but have administrative overhead.
Growing Firm (10+ Employees)	Traditional Small Group Plan or ICHRA	Evaluate employee retention goals, administrative capacity, and desire for standardized benefits versus personalized choice.

For solo practitioners, purchasing an individual plan through HealthCare.gov is often the most straightforward path, especially if eligible for premium tax credits. The Self-Employed Health Insurance Deduction can further reduce the tax burden. For firms with a few employees, an ICHRA offers a flexible, tax-efficient way to contribute to employee health costs without the full commitment of a traditional group plan. As firms grow, traditional small group plans become more viable, offering standardized benefits that can be a strong draw for top talent.

Regardless of the chosen path, it's beneficial to consult with a licensed health insurance producer. They can help analyze your firm's specific needs, compare quotes from different carriers like Select Health and University of Utah Health Plans, and ensure compliance with both federal and Utah state regulations. Their expertise can save your firm time and money while securing appropriate coverage.

Frequently Asked Questions

What are the tax advantages of offering health insurance to employees of an accounting firm?

For small accounting and tax firms, premiums paid for group health insurance are generally 100% tax-deductible for the business. This reduces the firm's taxable income and can be a significant benefit. For self-employed individuals, the Self-Employed Health Insurance Deduction (IRC Section 162(l)) allows them to deduct premiums paid for themselves, their spouse, and dependents, provided they are not eligible for other employer-sponsored coverage.

Can an owner of a small accounting firm get health insurance through the Utah marketplace?

Yes, an owner of a small accounting firm can purchase health insurance through HealthCare.gov, Utah's federal marketplace. If their household income is between 100% and 400% of the Federal Poverty Level (FPL), they may qualify for premium tax credits to lower their monthly costs. This is often a viable option for solo practitioners or very small firms that don't offer group plans.

What types of health plans are available for small businesses in Herriman, Utah?

In Herriman, Utah, small businesses can access HMO (Health Maintenance Organization) and EPO (Exclusive Provider Organization) plans through the marketplace. PPO (Preferred Provider Organization) plans are not available on-exchange in Utah for 2026. These plans are offered by carriers like Select Health, Regence BlueCross BlueShield of Utah, and University of Utah Health Plans, providing options for network structure and cost-sharing.

How does an ICHRA work for an accounting firm in Herriman?

An Individual Coverage Health Reimbursement Arrangement (ICHRA) allows an accounting firm to offer tax-free funds to employees to purchase their own individual health insurance plans. The firm sets a monthly allowance, and employees choose a plan from the marketplace or off-exchange. The firm avoids the administrative burden of managing a group plan, and employees gain flexibility in choosing coverage that fits their needs. This can be particularly attractive for small firms looking for a defined contribution approach.