We consider a group healthcare plan to be the backbone of any benefits package for employees. But the “benefits” aren’t just for employees. A group healthcare plan (and other parts of a comprehensive benefits package) actually benefit the employer, too! Consider these five reasons that more and more small business owners are starting to offer a group healthcare plan to their workers.
You can earn various tax benefits. The health insurance premiums that you pay for your employees can be used a deduction on your federal income tax return, and you might reduce your payroll taxes. Deductions can also be claimed for contributions to a health savings account, which you can establish if you’ve enrolled in a low-premium, high-deductible group healthcare plan. Plus, other tax credits might be available to small businesses who enroll in health insurance.
Healthier employees are more productive. Every employer knows the pain of hiring workers who are competent, but don’t consistently perform to their full potential. In many cases the reason is quite simple: The employee feels under the weather, has developed a health condition that impacts their ability to work, or they’re distracted by a sick family member. A group healthcare plan keeps everyone healthier, so that they can perform more consistently.
Fewer sick days means lower overhead. You’re familiar with the scramble to cover shifts and compensate for lost time when employees unexpectedly miss work. Healthier employees take fewer sick days, so you spend less time and money filling those gaps.
Happier employees are loyal employees. You also know the cost of frequent turnover, plus hiring and training new employees to replace those who leave for opportunities elsewhere. Employees who are offered full benefits packages feel more satisfied with their jobs, and are more likely to stay with you long term.
Benefits packages attract top job candidates. But when you do need to hire, you want to attract the best workers possible. In a competitive job market, you’ll fare much better when you offer the benefits your job candidates want. A group healthcare plan is consistently cited by job seekers as one of the most valuable benefits a company can offer them.
So, the word “benefits” doesn’t just apply to your employees! To learn more about tax incentives and credits, and how a group healthcare plan works, give us a call. We will walk you through your options and help you identify the type of benefits package that meets your company’s goals.