Should a Business Offer Healthcare Benefits?

Benefits

Offering healthcare benefits is optional for small businesses, but is important to an employee as one of the most popular benefits in a compensation package. An employer who wishes to stay competitive with other businesses in the community will most likely offer benefits. Obamacare requires employers with more than 50 employees to provide healthcare coverage. An employer may take advantage of offering group rate insurance to get a tax break.

Pros of Offering Health Insurance

  • Attract and retain employees
  • Avoid Obamacare fines and penalties
  • Premiums are 100% deductible on income tax for employers and self-employed
  • Small business health care tax credit
  • Businesses can get group rates from insurance companies or send employees to Small Business federal marketplace (SHOP)
  • Employees with preventative healthcare will stay healthy and working

 

Cons of Offering Health Insurance

  • Costs continue to increase and drain valuable resources for a company
  • Pushing additional costs onto employees (cost-sharing) can cause tension
  • Filling out all the paperwork, sending in premiums, and acting as a go-between are administrative hassles
  • Employees may sue employers when displeased with a provider or plan

 

http://www.bizfilings.com/toolkit/sbg/office-hr/managing-the-workplace/offering-health-care-benefits.aspx
“Should You Offer Employees Health Care Benefits?” Managing the Workplace. BizFilings, 14 Jan 2014. Web. 11 Jun 2015.

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