Under the Affordable Care Act, offering health insurance benefits is optional for smaller business that employ fewer than 50 full-time workers. And yet, there are many reasons why owners of small businesses still choose to offer health insurance benefits to their employees. One or two of these reasons might even surprise you!
Competition. As a business owner, you’re accustomed to the idea of competing for customers. But every time you hire a new employee, you’re also competing with other businesses to attract the best workers. Health insurance consistently ranks among workers, as well as those seeking employment, as the top desired benefit that a company can offer them. Offering group health insurance not only helps you attract the most skilled workers; it also keeps them loyal.
Obtain a better health insurance plan for yourself. Business owners often supply a group health insurance plan for this surprising reason: It helps them access health insurance for themselves as well! Due to the tax breaks offered to small business owners who purchase a group health insurance policy, business owners often find that enrolling in this plan is a better deal for them as well.
Tax benefits. If you choose to provide health insurance to your employees, you can use the premiums as a valuable income tax deduction.
Tax credits. If your business employs fewer than 25 workers, you can even earn a valuable income tax credit to help offset the cost of your premiums.
Increase productivity in the workplace. When your workers are able to obtain regular preventive health care, or see a doctor when they are sick, they are less likely to take extended leaves due to illness. This increases productivity and promotes a happier workplace for everyone.
As always, consult carefully with your business accountant before counting upon any tax deductions or credits. Once you evaluate how offering group health insurance can benefit your small business, give us a call to talk about group health insurance plans.