Benefit from Benefits!

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Why business owners should focus on the results and not get lost in the politics of offering health benefits to their employees.

Offering health benefits to employees used to be a simple decision for business owners. Plans were competitive and if you were not able to offer your employees coverage, they could just go buy a policy themselves. That tone has changed in the last decade due to increased legislation and skyrocketing premiums due in large part to reforming the healthcare system.

Healthcare Reform – the highly contested subject we have been hearing about more than we care to with each political cycle. Since the passage of the Affordable Care Act, we have heard the refrains and reassurances from every politician – it seems they are all experts on what needs to happen to reform the system, to buck the system, to fix the system, to overhaul the system. Every one of them knows what we as Americans and as business owners need. So where has all this arguing and reassuring led? It has led to a whole lot of discussion and zero change.

The debate over healthcare is not ending anytime soon and far be it from us to tell you what you should think; you are getting enough of that from any news outlet. We are here to help you navigate the healthcare world to keep you on the right track now by providing the best options for your employees.

What are the rules that affect business owners?

If you have more than 30 employees, you are facing stiff charges from the Internal Revenue Services and penalties of up to $3,390 per employee! Yikes! You can read more about that from the IRS here. What if your business does not have 30 employees, are you completely off the hook? You may not have to pay a penalty, but you are probably losing big in other ways!

Why should I offer benefits if I don’t face a penalty?

As the economy continues to strengthen and recover from the previous tumultuous decade, employees are eager to enter the workplace. Now they know they are no longer fighting for the jobs, the jobs are fighting for them. No matter your industry, you want the best working for you. Providing a competitive health and benefit package is key to making this happen! One of your top priorities is keeping good employees. Offering health plans increases employee retention and overall happiness. They lead to a healthier workforce, which leads to fewer sick days and people away. Most importantly, it builds trust; employees see you looking out for them and are more inclined to look out for you.

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Offering benefits creates healthier employees. Healthy Employees are Happy Employees!

Seeing the real cost

It’s understandable – healthcare is expensive. You may want to offer it, but can’t see it in your budget. This is not an easily remedied or simple concern. However, we encourage looking at the decision to offer benefits from a more holistic perspective. Yes, it costs money. But there are several tax benefits and deductions that can be maximized when you offer plans. For example, you can set up an individual or group HSA to offset health costs (read more about that here). Yes, it costs money. But what is the real cost of employee turnover and missing out on the top talent? Focusing on the limited dollar now could lead to you losing big in the end.

These are not easy decisions. We encourage you to explore offering benefits to your employees. While the marketplace may not be thriving for individual plans, group plans continue to be competitive and can be tailored to meet your business needs. We are here to help you navigate the world of employee benefits to take you and your employees to the top! Contact us today!