In part one of this two-part blog series, we went over some of the basic requirements for whether small businesses, or those under 50 full-time employees, must offer health insurance to their employees. The short answer is that with some limited exceptions, those in this category do not need to offer health insurance – but there are several major benefits to doing so, and many small businesses choose to as a result.
At Nielsen Benefits Group, we’re here to offer a wide range of employee insurance and employee benefits services to clients around Sandy and other parts of Utah, including group insurance needs, for both large companies and small to medium-sized businesses. In today’s part two of our series, we’ll look at some of the chief benefits of offering health insurance to employees even if you aren’t legally required to do so.
Attracting and Retaining Employees
Naturally, one of the largest advantages of offering health insurance to employees is that it allows you to attract and retain top talent. In today’s job market, high-quality candidates have many options for employment, and one major factor they consider is the benefits package offered by a company.
A strong health insurance plan can make your company stand out from others and help you secure the best employees. For instance, if you offer comprehensive coverage, such as dental and vision insurance in addition to standard health benefits, this can be a major selling point for many employees. Plus, once you have top talent on board, offering health insurance can help keep them loyal and satisfied with their job.
Tax Advantages
Another excellent reason to offer employee health insurance is the tax advantages that come with doing so. As a small business, you may qualify for certain tax credits to help offset the cost of providing health insurance to employees. These credits can be especially beneficial and help reduce some of your overall costs.
In addition, offering health insurance as part of your employee benefits package can also help lower employer payroll taxes by reducing taxable income.
Boosting Productivity and Reducing Absenteeism
It’s no secret that healthy employees are more productive and take less time off work due to illness. Offering health insurance can encourage employees to seek preventative care and stay on top of their health, ultimately leading to fewer sick days and increased productivity. Plus, when employees have access to affordable healthcare, they may be more likely to address any medical issues before they become major problems, keeping them in optimal health and able to focus on their work.
As we’ve discussed, there are many compelling reasons for small businesses to offer health insurance to their employees. From attracting top talent and taking advantage of tax credits to boosting productivity and retention rates, offering healthcare benefits can have a positive impact on your business as a whole.
If you’re a small business owner, consider the benefits of providing health insurance to your employees and consult with an expert like Nielsen Benefits Group for assistance in finding the best plan for your needs. Your employees will thank you, and your business will reap the rewards.
