*** Offering a health insurance plan for your workforce will make your employees more comfortable and incentivise high performance
Running your own business is a difficult and demanding process. Managing your facilities, production, and your staff all at the same time can be complicated even for small businesses or companies.
One of the things small businesses have to decide is offering a group health insurance plan for their workforce. Depending on the industry field, a business is considered small if it has a range of 250 to 1,500 employees (USA standards). However, group insurance plans for payroll can be purchased even if you have only two employees.
Small businesses can get a lot of perks from insurance companies, and tax credits, if buying group health insurance. Plus, according to the Affordable Care Act law, companies must offer a health insurance plan for employees if they have 50 or more workers.
How to Find Group Health Insurance
You will need to study the demographic data of your employees. Depending on the age, sex, marital status, health conditions or previous illnesses, if they have children or not, and if they need to include their families or not, you can start to search for plans that best suit your team.
Choosing a Health Maintenance Organization (HMO) plan can be the most affordable option, because they offer lower-cost premiums and cover medical services within the insurance company network of physicians. However, consulting with an insurance broker is the best option to get appropriate advice.
Benefits of Group Health Insurance Plans
Getting a group health insurance plan is a great option, because they usually offer greater benefits at a lower cost, compared to individual policies. Plus, your payroll will feel valued and there will be a better organizational environment.
The premiums of the group health insurance plans are usually paid 70% by the employee and 30% by the employer, but there are different options.
Premiums can be Tax Credits
The amount of money you spend on health insurance premiums can then be used as tax credits if you purchase your group plan through the Small Business Health Options Program (Shop), a facility that belongs to the Affordable Care Act. You can reduce your annual contributions by declaring the money you spent on group health insurance premiums.
Health insurance premiums can be considered for tax deductions in your annual statement and also for your employees’ statement. A win-win deal.
Depending on the state where your business is located, you will be obligated to give social security taxes, disability, and unemployment insurance, and you can provide those benefits through a group health insurance plan. This will allow you to take advantage of the benefits there are for small businesses with group health insurance plans.