If you own a small business, you’ve thought about whether to offer small group insurance. The biggest question that you want to know is if insurance for employees is worth it?
Once you start with one question, you have a lot more. Health insurance benefits the employees, but what about your business? Are there any drawbacks?
The Kaiser Family Foundation reported that about 49% of Americans, or roughly 156,199,800 of the U.S. population, receive employer health insurance. LIMRA’s 2020 Insurance Barometer Study reported that 54% of the U.S. population has some type of life insurance.
Many employees expect health insurance and group life insurance from an employer, whether the employer is big or small. It is important to their quality of life.
That doesn’t mean that the benefits are for the employees alone. To answer some questions you have, yes, small group insurance benefits your business. Now, let’s go over what some of those benefits are.
Get Lower Monthly Premiums
Small group insurance is for companies with a range of two to 50 employees that work full-time. The biggest benefit is that you can decrease the cost of monthly premiums.
Typically, getting group insurance costs less per person than purchasing individual health insurance in the market. Not only does the employee pay less for a premium, but so does the business owner. Further, the cost of premiums for small group insurance is more stable than it is for an individual plan.
Tax Incentives
Another plus for small businesses is that employer health insurance has tax benefits. One way is that, on average, employers can deduct 100% of the monthly premium cost of qualifying plans from the federal business taxes they pay.
Offering health insurance to employees as part of compensation can mean reduced payroll taxes for a business, too. If the employer offers HSA contributions, typically this can be a deduction on small business taxes.
Hire Top Talent
Small group insurance attracts job applicants to your job openings. It is a vital part of a hiring strategy to keep you competitive as an employer. Without insurance options, candidates may decide to look elsewhere for a company that offers employer health insurance.
Offering insurance also helps with your employer’s brand. You are seen as a company that values health and wellness.
Keep Employees and Encourage Loyalty
Since small businesses have a few employees, losing one outstanding employee can make a real impact on the business. Offering small group insurance can be an effective way to keep excellent quality workers.
In one sense, you are offering them what they are worth so that they don’t need to leave and find another employer who offers health insurance benefits. It helps employees to stay with you for the long term if they know you are treating them well.
Fantastic Options for Small Group Insurance
At FutureWise, we focus on helping small businesses like yours find affordable solutions for small group insurance. Our agency works with major insurance carriers, and we can provide you with suitable choices to meet your needs. Contact us today because we make finding insurance easy!