Top 5 Reasons to Offer Your Employees Small Business Group Health Insurance

With the soaring costs of Health insurance, the financial toll on your small business may force you to pass on more of the costs to your employees, or to stop offering health benefits altogether. Before you make your decision, consider these five important reasons why offering your employees Group Health Insurance may be money well-spent:

To attract and retain the best employees in a competitive job market
Survey after survey has shown that after monetary compensation, employees value health insurance benefits over any other aspect of their job. Group health insurance benefits may well be the deciding factor for a prospective employee who may be choosing between your job offer and a similar one offering the same pay. A competitive health benefits package is also very likely to help you retain your best workers.

To get affordable health insurance coverage for yourself
If you have or are shopping for insurance for yourself and your family, you will find that an individual health insurance plan is likely more expensive than a group health plan. The more employees you have, the lower the rates you can find.

To take advantage of available tax incentives for your business
There are a number of significant tax incentives offered to businesses that offer employees health insurance benefits. As a business owner, you can usually deduct 100% of your group health insurance premiums on qualifying plans. If your group plan is offered as a total compensation package, you may also reduce your payroll taxes.

To offer your employees tax deductions
Your employees, in their turn, will reap tax advantages by paying for their health insurance using pre-tax dollars �€" their insurance premiums are taken from their pay check before their taxes. If they bought their own individual health insurance, they would have to pay for it with after-tax dollars. It may also potentially lower their tax bracket. Secondly, if you offer a Health Savings Plan, not only will your employees benefit from lower premiums, but any earnings made on the Health Savings Account will also accumulate tax free.