Why Companies Should Offer Affordable Employee Health Benefits
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With the kind of volatile economic environment we live in, it’s no surprise that people in the U.S look for different ways of lowering their expenses in various avenues of their lives. They are more prudent with their expenses and make investments with greater care.
In many ways, this is what all businesses do as well, albeit on a larger scale. They look for different ways of lowering costs within their organization and for means of retaining employees.
Why Affordable Employee Health Benefits?
With the latter point in view, companies that offer Affordable Employee Health Benefits are the ones that are also able to retain their employees in a more effective way. So, what exactly are the advantages of offering these benefits?
- Attract and Retain Employees– This is a subjective issue and is dependent on whether other similarly-sized companies in your area and industry are offering employee health benefits. There are certain norms in place when it comes to providing these benefits and it’s important that you as a company toe the line in this aspect.
The Affordable Care Act and the related by-laws require that companies that have 50 or more employees (either full-time staff or part-time), should offer health benefits. If the company doesn’t do so, the staff is then eligible to receive some premium tax credits they can use to buy their own insurance.
- Enjoy Tax Advantages– When you offer employees benefits that increase their overall compensation packages, you automatically get a tax deduction for the amount you have contributed. This also means your out-of-pocket cost is far lower in comparison to the benefits your employees get.
Individuals who are self-employed can deduct 100 percent of their medical insurance premium costs as a business expense; 100% of the premiums can be deducted towards Affordable Employee Health Benefits If you have an incorporated business, the entire cost of your insurance & that of your employees is deductible.
- Healthcare Tax Credit– If you run a small business and have no more than 25 employees, you may also be eligible for a tax credit to purchase health benefits for the people you employ. Not only do you benefit, but your employees benefit too as they get group-purchasing power. As a business owner, if you choose not to give your staff any health benefits, they may still be eligible to get cheaper health insurance by opting for group rates via your business.
Increase your Profitability
In addition to this, one of the major advantages of offering Affordable Employee Health Benefits is that it is one of the best ways to keep your staff healthy. It helps them get cheap preventive care and this also means, they will be absent from work less often.
No matter which way you look at it, Affordable Employee Health Benefits offer distinct advantages to employers as well as employees and it’s the ideal way to retain quality employees and keep your businesses’ profitability at high levels.
Employers Resource helps every business at all stages with growth and development. Find out more! Call us today at (800) 559-2350.
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