A Quick Look into Small Business and Employee Benefits Health Insurance Options
Every small business organization can benefit from having a well-thought-out small business health insurance plan that supports both employees’ and employers’ needs. Businesses will also receive a tax advantage that allows them to deduct plan contributions, including health insurance, life insurance, and retirement plans. However, providing benefits that both meet employees’ needs and mesh with all the laws, isn’t cheap, but is one of the greatest investments a business can make in terms of attracting terrific staffers, and building and keeping a great team. Therefore, it is vital to get the most from small business health insurance / employee benefits investments.
This is why it’s so crucial that as a small business owner – you understand the plans and employee benefits available, so you can pick the option that best suits your needs, your employees’ needs, and your businesses’ needs.
Let’s take a look at some small business health insurance options:
Flexible Spending Account (FSA)
This is a savings account that is used for medical expenses and is funded by pre-tax dollars. Using pre-tax dollars simply means that the employees will show that they have less income and will, therefore, have fewer taxes withheld. The employee decides the amount of contribution to the account each year.
Health Reimbursement Arrangement (HRA)
As the name implies, this plan is designed such that the employer reimburses the employee for health care. HRAs are slowly becoming a popular option because of the kind of control it gives small businesses.
Small Business Health Options Program (SHOP)
The purpose of SHOP is to allow smaller businesses, which generally pay higher overhead costs for obtaining insurance, to have access to better quality coverage for their employees at lower costs. The SHOP marketplace is available to businesses with up to 50 full time equivalent employees.
Professional Services Organization (PEO)
The employer contracts with a PEO to provide outsourced services in payroll, human resources, employee benefits, and tax compliance. Depending upon the cost savings per service, an employer can implement some or all the offered PEO’s services. The PEO will manage all federal and state employee-related compliance including payroll taxes, human resource assistance, OSHA, and ACA.
All of these options give you flexibility when designing a comprehensive employee benefits package. A lot of employers today are offering employee benefits in very creative ways to satisfy the unique interests of their employees.
Contact WNC Health Insurance today, to discover the best small business health insurance options and employee benefits for your company.