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- Determine what types of healthcare coverage your employees need
- Investigate whether your small business qualifies for tax credits by offering healthcare coverage
- Small businesses and entrepreneurs can find insurance coverage through the marketplace, groups and associations, payroll companies, brokers and insurance agents
- Adding your employees to a pooled group will reduce risks and bring down rates.
- There are up to $3,000 dollar per year penalties for each full-time employee not covered by health insurance if your company employees over 50 people
The number of full time employees are what determine whether your small business is required to offer employees mandatory healthcare coverage. There are penalties assessed to companies that ignore the ACA regulations,but incentives are in place to make it affordable for any small business to offer quality healthcare policies.
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Finding the Right Health Insurance Plan for Small Businesses
The number of employees you need to cover and all specific healthcare needs will help determine your course is seeking out the right healthcare policy for your small business.
There will be no way you can offer the perfect mix since the needs of individuals and families vary. You can still locate a plan that offers a various level of coverage options that each employee can pick from.
If there are employees that depend on frequent doctor visits and take prescribed medications, this leads you to the obvious conclusion that you want a policy that will help reduce these costs for your employees. Bare minimum requirement coverage might work if the entire crew is younger and in reasonably good health.
Tax Benefits of Offering Healthcare Insurance to Employees
Getting health insurance coverage for the employees of your small business can really pay off at tax time. Purchasing a policy through the SHOP marketplace for small businesses can get you up to 50 percent of your costs in premiums back if you meet the criteria for tax relief. These are:
- You must have 25 or fewer employees.
- The average salary must be under $50,000 dollars per year.
- All full-time employees must be offered the coverage.
- You must be paying at least 50 percent of the premiums for the employee coverage.
The savings your company can realize when it comes to paying taxes are enormous. You will have happier employees and the cost to your company is minimal. You can begin the process of finding out if your company qualifies for these tax breaks here.
Marketplace Coverage and Private Insurance Sources
There are two places you can source health insurance coverage for your employees as a small business owner. You can research what the ACA marketplace offers in the way of affordable plans. There are also several ways to get an affordable plan through private sources.
Below is a quick list of available resources for gaining quality healthcare insurance:
- Group and organization memberships
- Insurance brokerage firms
- Private insurance companies and agents
- Payroll management companies
Join an Association for Pooled Savings
Reducing the risk to an insurer against a catastrophic health event is one of the most effective ways to get lower rates for your employees. Having your employees “pooled” with the employees of other for-profit and non-profit organizations is one way to bring the risks down.
Many states offer what is called “Group Pool Arrangements” to help lower the costs to small businesses.
There are a variety of professional organizations and groups you can join that offer pooled health insurance plans. It has become a beneficial way for many small businesses to offer quality healthcare coverage at a price everyone can afford. This is not the solution for all companies, but it is another available tool in helping make the best decision.
Healthcare Insurance for the Business Entrepreneur
The lone-wolf business operator can find affordable health insurance through the Marketplace for small businesses, or do an individual search. The business entrepreneur can also utilize the same resources as other small businesses in the private sector.
It might be more cost-effective to check with any professional organizations and groups with membership benefits of pooled group health insurance. Insurance brokerages and agents might prove helpful in the search for an affordable healthcare plan.
Mandatory Healthcare Under ACA Rules and Regulations
The current ACA rules and regulations make it mandatory for both individuals to have and businesses to offer healthcare coverage to employees if there are 50 or more full-time workers.
The costs in penalties to businesses can be as much as $3,000 per year that mandated levels of medical coverage were not offered to your employees. You will be assessed this penalty if your employee has to seek adequate coverage through the marketplace due to unavailability through an employer.
One positive note is that the ACA rules have offered tax credit incentives for businesses with far fewer employees that offer affordable healthcare coverage.
Offering healthcare benefits is one way to ensure you are an employer that is in demand. You will enjoy a much lower employee turnover if they can get the needed and mandatory health insurance through an employer.
Offering healthcare coverage is not mandatory for every small business, but there are enough incentives to make it an option worth investigating. Contact a small business healthcare coverage specialist today and find an affordable option for your employees right now!
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