Small businesses are the backbone of our economy, employing more than 60 million people. Chances are, you are part of a small business. The Affordable Care Act stipulates small businesses with fewer than 50 employees are not required to offer health insurance benefits to their employees. That doesn’t mean you shouldn’t provide health benefits. Offering health insurance to your employees is worth it.
1. Enjoy Tax Benefits
Business Tax Incentives: Like larger companies, small businesses can typically deduct some of their health insurance-related expenses from their federal business taxes. Expenses that might qualify for these deductions may include:
- Monthly premiums
- Contributions to an HSA
- Tax-advantaged dollars
Pre-tax benefit for employees: Providing group health insurance frequently means lower monthly premiums for employees. Employees can generally contribute toward their premiums from pre-tax salary, leading to considerable tax savings over time.
2. Compete for Quality Employees
Offering health insurance to employees is a big bargaining chip to lure new and current employees away from your company. If you aren’t offering your employees health insurance, chances are your competitors are. No matter the size of the employer, health insurance benefits are a big deal to employees. 66% of small business owners report that they offer medical employee benefits to help them hire and retain the best employees. Employees want to feel confident that their employers are going to invest in them. Not just in salary but also with employee medical benefits. By offering medical insurance, employees are much more willing to remain with an employer.
3. Keep The Doors Open
As a small company, every employee is essential to running your day-to-day business. With access to healthcare, workers take fewer sick days and absences. Healthy employees are more positive and can maintain focus and achieve more. Better employee attitudes lead to teamwork, better customer services and sales which ultimately contribute to your bottom line.
Keep Your Business Healthy
Happy and healthy employees are more loyal, productive and contribute more to the success of your business. Health insurance plans come with some cost, but can you afford not to offer health insurance benefits?