Providing health insurance to your employees is something you should think about as a small business owner. Any business owner may find this an important decision. In addition to health insurance being a benefit for employees, employers will also gain many benefits as well. Benefits such as health insurance are among the most important factors that influence employees’ loyalty to a company.

Why Employer Health Insurance Is Beneficial For Small Businesses

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Reduced premiums

Group health plans are less expensive than individual policies from a cost perspective. The average cost of health insurance for small businesses is generally lower per individual. Additionally, if you own your own business, you can include yourself and your family. Offering a group health insurance plan to your workforce can be an excellent way to lower the costs of health insurance for your small business.

Tax incentives

The advantages relating to tax are also a big positive point for group health plans. Taxes on business income are generally deductible 100 percent of the costs of premiums employers pay on qualified group health plans. Including health insurance coverage in a worker’s compensation package may result in a reduction in payroll taxes for a business. HSA contributions can usually be deducted from small business taxes.

Reduce sick days and increase productivity

With group health insurance, employees have access to medical care instantly, as well as a health plan they can rely on if they become ill or experience an emergency. Providing small businesses with health insurance can make the difference between reducing sick days and increasing productivity by providing employees with peace of mind.

Employee loyalty increases with health insurance.

Small businesses can retain their best employees with group health insurance. It will appeal to both new hires and existing employees to make group health insurance more accessible and affordable.

You can still offer your employees group health insurance rates through your business even if you do not contribute to their insurance. The Small Business Health Options Program also provides health insurance for small businesses through a government-run insurance marketplace.