Many employers shy away from the idea of providing group health insurance benefits to their employees, assuming it is too big of a company expense. However, there are many reasons why a business owner might consider offering a group plan and there are numerous advantages. Here are 5 reasons why small & large business owners would consider offering a group health insurance plan to their employees.
- Attract the best employees
Needless to say; Offering health insurance benefits to your employees gives you a competitive advantage. It gives you the opportunity to enhance your office atmosphere and improve morale. Employees tend to be happier and more satisfied with their jobs when they are offered group insurance, as it creates a culture where employees do not have to stress about their insurance needs.
Recruiting and retention are equally important. Replacing an employee can cost you almost half of your yearly salary. Many small employers cannot afford to have turnovers. Offering health insurance to your employees creates a sense of great value in your employment team and employees will consider the cons of dropping the opportunity of benefits through their employer.
- Business Owners Financial Gain
Employers gain tax advantages by having these group plans in place. Employers can deduct 100% of their employees’ health insurance costs, as a business expense. If your business is incorporated, your own insurance costs are also deductible. Additionally, the amount your team pays toward their premiums is done on a pre-tax basis, which means that they have lower taxable payroll earnings, so your payroll taxes are lower.
- Employee Financial gain
Because employee’s premiums are deducted from their paycheck, pre-taxed, it lowers their overall taxable income. That being said, it gives employees control over their finances. You are also offering your employees group purchasing power. Even if you decide to only contribute the bare minimum toward your employees’ health insurance premium, you can offer them the opportunity to obtain group rates through your business, which is typically cheaper than the rate of individual & family plans.
- Happy community
Many health insurance companies focus on preventative care & improving the overall health of their beneficiaries. The health company you choose may improve the overall quality of life for your employees & their families. This acts as an investment to not only the employees, but to you & the community. Offering benefits to employees shows the demonstration that employers care about everyone’s happiness & long term health. There is a sense of comfort in knowing that you are taken care of, and that will ripple throughout your entire company.
There are many questions that may come up when reviewing health insurance options. The right agent can give you access to centralized details and resources, so that your whole team knows exactly where to go for help.
With the right guidance, you will be able to get your team a plan that custom fits exactly what they need. Call to schedule an appointment and get you & your team on the right track today!
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