Most business owners are familiar with the concept: When you offer the right health benefits, it jump-starts company growth. That’s because when employees are given health insurance, they miss fewer workdays, are more satisfied, and can even have a higher overall commitment to your business.
And that’s not all. Here are a few major advantages of offering health insurance to your employees:
1. RECRUIT AND RETAIN KEY EMPLOYEES
This U.S. Employee Benefit Trends Study from MetLife revealed the right combination of benefits and experiences can help employees feel more engaged and more cared for — and build the trust that enables them to thrive.
Offering health insurance is a valuable tool for attracting and retaining the most qualified employees. While other factors such as industry competition, workforce demographics, and workplace culture certainly affect retention, health benefits are an important part of your overall compensation package.
2. TAX ADVANTAGES
Employers can deduct 100 percent of the cost of their employees’ health insurance that they pay on their behalf as a business expense. By offering a traditional group health plan, you can provide employees a tax-advantaged health insurance. These tax advantages increase your total compensation package and allow you an income tax deduction for the contribution.
You can also receive a tax credit if you are a small business owner with fewer than 25 employees. If you have purchased small group health insurance for employees and meet the eligibility criteria, you can claim the credit.
3. REDUCE FINANCIAL WORRIES FOR EMPLOYEES
If you have 50 or more employees, you can choose a large group health insurance plan that could have lower rates than an individual plan ( It depends on the health of the group and other factors) . This makes a great addition to your compensation package and lets your employees pay even less.
Lower cost of health insurance allows your employees to feel more secure when it comes to any medical expenses, emergency or otherwise. When your employees have peace of mind, they can be more focused and driven to accomplish company goals.
4. AVOID THE EMPLOYER MANDATE PENALTY
If you have 50 or more full-time equivalent employees, the employer mandate (also known as “play or pay”) affects your business: you are required to offer affordable, minimum-value group insurance. Large employers who fail to do so have an obligation to pay the penalty on their tax return.
Group health insurance plans focus on preventative care and improving health. Offering health insurance will keep your employees healthy and working. When your employees have more affordable access to health care, they will take fewer sick days, which enables your business to achieve maximum profitability.
Shopbenefits.com is here to help navigate your company through the group healthcare buying process. We are committed to making insurance easier and more accessible for businesses of all shapes and sizes.
With dedicated agents who know your industry inside and out, we’re here to give you more than just a link – we want to provide expert advice and guidance whenever you need it. Feel free to contact us for your complimentary review or call (404) 256-2171 and ask for Al Schiebel to learn more about the advantages of offering your employees health insurance. Get your affordable quote today