If you are a small business owner, you may benefit by including small business health insurance in your benefits package. Unlike large business owners, employers with fewer than 50 employees may choose not to offer insurance to their employees without being penalized by the government. There are some things to consider when deciding whether or not to offer this benefit to the employees of your business.
Health insurance is considered to be a huge perk for employees, now that coverage is required and can be quite pricey for an individual. As a result, companies that offer health insurance tend to see more applicants and even more qualified employees. Once hired for a job, workers with medical insurance tend to be more loyal and stay in their positions for longer periods of time than those who do not receive benefits. Also, there is the added benefit that employees with insurance tend to be sick less often and miss fewer days of work.
Smaller business owners have a bit of an incentive to offer small business health insurance to their employees. If you are a business owner with fewer than 25 employees working full-time, you may receive a tax credit from the government. In order to qualify, the average of your employees’ wages must be less than $50,000 annually, and you must contribute a minimum of half the cost of an individual’s premium. This contribution will gain you a credit of up to 50 percent of the amount in 2014.
If your business has between 25 and 50 employees, you will not receive a tax credit for offering medical coverage. You will need to compare the positives and negatives to determine whether offering small business health insurance is a smart move for your business. There are different levels of coverage you can offer if you want to offer the perk but cut down on your premium costs. If you are on the fence, consult with a health insurance broker who can sit down and discuss the best options for you.
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