Posted on: 16 September 2022
Group health insurance is one of the most expensive benefits that employers offer their employees, but it's also one of the most important. If you run a business that employs workers, here are some reasons to offer group health insurance.
Help Your Employees
Group health insurance has a significant and direct benefit for employees, and sometimes also for their spouses and/or children. It gives the employees health insurance for free (if your business pays the full premiums) or at a reduced cost (if your business pays part of the premiums).
Providing affordable health insurance ensures that employees have financial help when they need medical care. An employer-provided group health insurance policy might be the only coverage that employees with serious conditions can obtain. Such employees often need group insurance in order to afford their medical bills.
Increase Employee Compensation
Although group health insurance doesn't increase employees' paychecks, providing insurance substantially boosts employee compensation. Health insurance has real monetary value, and that value is very much part of employees' total compensation.
Employees will recognize that having health insurance provides them with a financial benefit, and that benefit should be factored in when calculating the total amount that a job pays.
Attract More Qualified Employees
Because group health insurance is a valuable benefit that increases overall compensation, it should help your business attract more qualified employees.
Workers in some fields might only consider positions that provide group health insurance. You might need to offer an especially good health insurance plan if you're targeting workers that assume they'll be offered this benefit.
In other fields where health insurance isn't standard, providing group health insurance can be a benefit that sets you apart from other employers. Some workers might choose to work for your business solely because of the insurance.
Get a Tax Deduction
The premiums that your business pays for group health insurance are tax-deductible, since providing health insurance is an expense associated with paying workers.
Like any business expense deduction, deducting health insurance premiums will reduce the net profit that your business is taxed on. The reduction can be substantial because health insurance premiums are sizeable.
Some small businesses are eligible for special tax deductions or credits if they provide employees with group health insurance.
Meet Federal Requirements
Federal law requires that businesses over a certain size provide group health insurance as an employee benefit. Providing a policy that meets federal requirements will ensure your business doesn't run afoul of this regulation.
For more information, contact a company like Wilkinson Insurance Agency.Share