The Advantages of Offering Small Business Owner Health Insurance

As a small business owner, you may want to provide some sort of small business owner health insurance for your employees, but may believe that you simply cannot afford to. However, here are some reasons why you may want to reconsider this issue and the ability to provide this important benefit to your employees.

To begin, there may be significant tax advantages to employers who provide health insurance for their employees. For qualified group health plans, employers may be able to deduct 100% of the premiums paid as a business expense. Employers may also be able to reduce their payroll taxes when health insurance is part of a complete compensation package. Of course, employers should consult their accountant, and possibly attorney, for further advice.

Business owners who offer some sort of small business health insurance plan will increase the pool of potential employees from which to choose. Indeed, surveys consistently show that potential employees value health insurance, second only to salary. This will allow you to attract and retain quality employees. In addition, employees can pay their premium portion with pretax dollars, making their expense slightly more affordable.

Lastly, if you, as a small business owner, are currently paying for an individual policy, yet leaning toward offering group insurance to your employees, here's something to consider. Group plans typically offer better rates and more comprehensive coverage than an individual plan.

Providing small business owner health insurance may simply not be possible for some small business owners. However, for many entrepreneurs the incentives outlined above may be enough to make it possible. The payoff from being able to provide your employees a valuable benefit will make all the effort worthwhile.