Benefits to owners offering small group insurance

If you’ve been in business for more than a year or so, you probably already know that what the ACA classifies as a “small” business are those with fewer than 50 workers. And those small businesses with between 2 and 49 full-time equivalent (FTE) employees are not legally required to offer health insurance to their workers.

However, there are several strong reasons why these business owners choose to offer small group healthcare coverage.

Why small business owners should offer health insurance

The benefits that arise from offering employees health insurance coverage plans are real and significant.

For example, your employees will be more likely to experience higher levels of job satisfaction. This is associated with a stronger degree of company loyalty among your employees. In addition, your company will benefit from having a stronger ability to attract and recruit qualified and top-tier candidates.

Numerous studies have shown that among other benefits, employees with good health insurance tend to be healthier employees.

When it comes to getting employee health insurance, one insurance company is pointing toAnd

“It can reduce absenteeism. A healthy employee is present and more productive. The more physically healthy workers are, the less they are exposed to injuries and the less likely they are to miss workdays.”

Along with healthy, happy workers, today’s small business owners must find ways to counter the trend of what one consulting firm referred to as “the big burnout” which is also known as the big quit. McKinsey & Company found in a recent survey that 40 percent of employees stated that they are at least somewhat likely to leave their current job in the next three to six months.

However, 78 percent of employers report that they offer at least one voluntary benefit. This includes small business owners.

McKinsey & Co. too mentioned that – that,

Employers say they offer these benefits to support employee well-being, enrich basic benefit plans, and attract new employees. Among non-medical benefits, employers see dental, vision, and short-term disability as the most important.

However, besides the benefits for the company and the employees, there are some direct benefits for the small business owner as well.

Benefits of offering homeowners health insurance

One of the most direct and tangible benefits for owners is the tax incentives offered by the government as a way to encourage small businesses to offer qualified health plans, or QHPs.

to me One sourceAnd

Contributions you make to employee small group health insurance benefits are tax deductible, according to the Employer tax guide for fringe benefits From the Internal Revenue Service (IRS). This means that these costs are reported for informational purposes only and are not part of any tax calculations for your business: they are not subject to federal income tax, Social Security, Medicare, the Federal Unemployment Tax (FUTA), or the Railroad Retirement Tax Act (RRTA), and are not Report it on Form W-2. Taking advantage of this stimulus is especially valuable – it could lead to lower tax payments, or even eliminate them altogether in some cases.”

In addition, by offering your employees a formal health insurance plan or even making formal contributions to employees’ health care costs, the amounts you set aside for their health care can usually be fully deducted as a business expense.

These include contributions you make to your employees’ monthly premiums, compensation made through approved medical payment plans such as health reimbursement arrangements (HRAs), and even contributions you make to employee health savings accounts (HSAs), which is a type of pretax savings account.Benefits of offering homeowners health insurance

And as we’ve detailed in previous articles here, you may qualify for a small business health care tax credit, which covers up to 50 percent of the health insurance premiums you pay.

Health care tax credits for small businesses require that you meet the following criteria:

  • You have fewer than 25 full-time employees and pay them a median salary of less than $53,000 annually.
  • File a group health insurance policy and pay at least 50 percent of the employee’s premium costs (dependent premium payments are not required).
  • Buy coverage for yourself through the same plan as your employees.

In addition, you do not have to offer coverage to part-time employees to get this credit, but you may need to purchase a group policy through the Small Business Health Options Marketplace (SHOP) to qualify.

JC LEWIS Insurance Services can help you get health coverage

At JC Lewis Insurance Services, we want to be your preferred insurance partner.

We have over four decades of experience and continue to provide high quality health insurance plans. JC Lewis works only with leading health insurance companies that are licensed to do business in the states in which we operate.

As a family owned and operated health insurance agency, located in Santa Rosa, California, we are a small business, and we understand the special needs and challenges that business owners face. In addition to being specialists in finding and administering small business medical insurance plans, we are also authorized and approved by every insurance company we represent.

So, whether you’re considering small group health insurance for you and your employees or are simply looking to make changes to your existing plan, we understand that you likely have questions and concerns.

Your questions about health coverage insurance are always welcome, and you can be confident that JC Lewis Insurance Services will help you find the right solution for your needs.

JC Lewis – Make us your partner of choice to help you make the right decision for your health coverage needs.


Source link

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *