Group Health
What are the benefits of providing group health insurance to my employees?
The bottom line is that Group benefits help you attract and retain the high quality employees you need to run your business. Benefits are a big part of the total compensation package that you provide your employees and are only second to their pay or salary.
There are tax incentives available to you and your employees. A business can generally deduct the premiums they pay on qualifying group health plans for employees and, by offering group health insurance as part of a total compensation package. In addition, the employees’ portion of their monthly insurance premium can be paid with pre-tax dollars through a Section 125 plan.
Top 5 Reasons to Offer Group Health Insurance
- Employee Satisfaction
A health insurance plan offered by an employer is another added perk to the job. Offering employees this benefit shows them that you, as an employer, care about their safety and well-being as well as their family. Not to mention, employees are more likely to stay with the company the better the health insurance plan is, reducing possible high turnover.
Offering the basic health care plan is a good start, but the more important your employees are to you, the more you have poured training into them and the more they have produced for you, why wouldn’t you want to reward them? Try selecting a HMO or a PPO plan to give them more options in their care. Take on some of the responsibility to help them out and they will greatly appreciate your effort.
- Increased Performance
By increasing the employee satisfaction, you ultimately increase their performance. There are also studies that show a healthy employee makes for a more productive and effective member of the team. A great health care plan both keeps employees happy and increases your bottom line.
- Staying Competitive
Finding good workers these days can be a cutthroat process. Many employers are selling their health care plans to prospective employees, even more so than the bonus packages. Offering a well-established health program can give you the edge to you can take the wind out of your competitions’ sails. By marketing your health care plan, you will attract the best employees you can.
- Tax Benefits
A Business can generally deduct group insurance premiums paid on behalf of employees. 100% of that money comes back to you in the form of a tax break to help you even out the costs each year. Health savings accounts also offer the tax benefits to employees because the money is deducted pre-tax, and that could move them into a lower tax bracket while giving them more money than they are paying out.
- Teamwork
Showing your employees that you care will help you build the relational bond with them, allowing them to trust you to make sound decisions. The biggest thing to remember when starting a new health benefits plan is to let every employee know about their new benefits as well as if those benefits change in the future.
If you are still unsure which type of plan to choose, ask them what their preferences are and why. It might give you an idea of what exactly they are looking for in a plan, since you already know what you are looking for in an employee.
Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with professional advice. Information is subject to change without notice.