Deciding whether or not to offer healthcare benefits is a difficult decision for owners of small businesses. Employees often rate healthcare as the most important benefit they look for when considering a new job. Providing coverage can help employers attract and keep talented people in their organization. According to a 2015 survey by the National Small Business Association (NSBA), about 65% of the small businesses surveyed offered health-related benefits to their employees.
But the cost to an employer can be significant, and it’s not a decision that can be made lightly.
Employers of all sizes should be aware of the pros and cons of offering health benefits to their employees. Read this article from the QuickBooks Resource Center for an overview of health insurance requirements.
Some of the highlights of the article include:
- If you own a business with 50 or more full-time employees, you are required to provide a health insurance plan.
- Make sure you follow the appropriate rules regarding Employer Shared Responsibility payments.
- Choose a plan with employee premiums that are affordable, which means 9.5% of the employee’s annual household income, or less.
- Employer-sponsored plans must provide minimum value, which covers at least 60% of the total expected costs for the benefits.
Adding a health insurance plan can be costly and difficult to figure out. However, offering health benefits communicates to your employees that you care about their welfare and makes your business a more sought-after workplace.