For small business owners, providing group health insurance can be a great way to attract and retain top talent - but did you know that it also comes with some pre-tax benefits? That’s right - offering group health insurance for your employees can help your business net some serious savings. Let’s dive in!
The Basics of Pre-Tax Benefits Pre-tax benefits are just what they sound like - benefits that are paid out before taxes are taken out. This means that employers who offer these types of benefits get to save money on their taxes by deducting the expenses from their taxable income. Generally speaking, these benefits will cost about the same amount for both the employer and employee, but since the employer is paying for them before taxes, they’re getting a discount in the end. Sounds pretty good, right?
Group Health Insurance as a Pre-Tax Benefit Group health insurance plans is one of the most popular types of pre-tax benefits available to businesses today. When employers offer group health insurance plans to their employees, they can deduct up to 100% of the premiums they pay as a business expense. This means that not only is it beneficial for
employees (who get access to affordable health care coverage!), but it’s also beneficial for employers (who get a tax break!). And since the premium costs are split between employer and employee, everyone saves money in the end. Does this make you want to talk to your accountant more? I thought so. Additional benefits of Group Health Insurance Offering group health insurance isn’t just about saving money on taxes - there are lots of additional advantages associated with offering this type of benefit too! For example, having access to quality healthcare coverage can improve employee satisfaction and loyalty, leading to improved morale and higher productivity overall. Plus, offering health insurance shows potential candidates that you value your staff and want them to have access to quality coverage - which is always a plus when it comes time to hire new team members.
If you're looking for ways to save money on taxes while still providing valuable benefits for your employees, consider offering group health insurance as part of your company's benefits package. Not only will this save you money on taxes each year, but it will also ensure that your staff has access to quality healthcare coverage - which is always an important factor when it comes time to hire new team members. With all these advantages combined, there's no reason why you shouldn't make group health insurance part of your company's benefit package today!