Great Reasons to Consider a Group Plan
Tax Benefits for Your Business
Expenses that an employer incurs related to the benefits they provide for their employees and their dependents, are 100% tax-deductible as business expenses, on both state and federal income taxes.
In addition, employers can set up a Section 125 plan which allows employees to contribute to the cost of their health plan on a pre-tax basis. By deducting the employee’s cost towards their insurance premiums from payroll before state and federal taxes are calculated and deducted, the employee’s take-home pay increases while the employee’s taxable income decreases.
Employers should also be aware that the Affordable Care Act offers small businesses healthcare tax credits to help offset the cost of insurance.
Better Employee Recruitment and Retention
Businesses that offer group medical coverage are able to lower their hiring costs. Looking for, hiring, and training new employees takes time and costs money. Having insurance helps you to recruit and retain talented employees.
It also helps employers to reduce absenteeism and decrease risks associated with poor health long term. When employees don’t have health insurance, they wait longer to seek treatment, which can lead to the need to stay home from work or go out on disability. Healthy employees are less likely to injure themselves and more likely to do their jobs well.
A well designed benefits package can enhance your office atmosphere and improve morale. Employees tend to be happier and more satisfied with thier jobs when they are offered group insurance. Some small employers may be able to offer their employees slightly lower wages if those wages come with health insurance.
Types of Group Benefits Available
