The Basics Of Offering Health Insurance For Employees
Offering health insurance for employees is often a big selling point for businesses that want to attract or retain people. If you're ready to start looking for an employee health insurance provider, you ought to keep these four basic aspects of the process in mind.
Establish a Financial Baseline
Any business that's going to contribute to a health insurance plan needs to figure out what it can afford. You should calculate the percentage of your available money you can commit. It's also a good idea to have some extra money available in case you add employees or rates go up.
If you're not able to provide full coverage, you can still pay for part of the insurance plan. Similarly, businesses can still offer health insurance options even if they can't contribute to defraying the costs.
Tax Credits
You should also investigate whether there are tax credits available to help you offer health insurance to your employees. Generally, you'll have to pay at least 50% of costs to qualify for a credit. Likewise, most federal credits are available to small businesses that employ 25 or fewer employees on a full-time basis. Bear in mind that there may be state and local credits available, too.
Even if you don't receive credits, you may still be able to deduct the costs. Speak with a tax professional to confirm what might be available for tax benefits before deciding to consult with an employee health insurance provider. This will make it easier to assess the advantages of specific arrangements.
Benefits
It's also worth thinking about how the plan will offer specific benefits. Do you want to include dental and vision coverage, for example? Will you include family members on plans? What options will employees have to buy more coverage?
If you're sure you're going to move forward with offering health insurance, it's wise to speak with employees about their needs. They can help you assess what's essential for them.
Employee Classifications
Be aware that the law often limits your ability to selectively provide health insurance. Take the time to figure out the top-level classifications for each of your employees' jobs. Full-time versus part-time represents the biggest divide.
Also, make sure all employees with similar arrangements have access to the same plans. If you don't currently have classifications for things like seniority and departments, implement them. This will allow you to, for example, offer health insurance once employees reach specified levels of seniority.