Employees benefit when companies keep their Health Insurance plan

Employee Benefits are not just a benefit for employees.  There are some definite benefits for employers too.  Having a quality Employee Benefit plan helps attract and retain good people.  Think about it….all things being fairly equal, would you want to work for a company that offered good benefits or somewhere that either doesn’t provide them or sub par benefits?  Employers get breaks when employees pay for their benefits pre-taxed.  The company’s Workers Comp rates are reduced and the FICA goes down too.  The employee’s taxable income is reduced, so there is a good benefit to the employee too.  Employers don’t realize it, but the minimum for the company to contribute to each of the employee’s Health Insurance plan is about $100 a month.  The employee would have to pay the difference in many cases.  With Health Reform that changes a bit, but not dramatically, especially with groups that have fewer than 50 employees.

Employers contribution for Health Insurance plans is not as much as you think

For most companies, the employer contribution for a Health Insurance plan is typically 50% of the employee only premium or about $100 a month.  The employee would be responsible for the rest of the premium, including if the employee wanted to insure their spouse and kids.  There are many ways to strategize this too.  As an employer with a Qualified Health Plan, they can also have different employee classifications and adjust the contribution to be the same for each classification.  This is done frequently.  Employers can also adjust contribution on tenure…..an employee that has been with the company for 12 months has  $XX contributed towards their insurance, 24 months  $XXX, etc….

Employers can contribute different Health Insurance amounts to employees based on several things

If an employee is management or supervisory, they can be compensated differently, including what the company contributed towards their Employee Benefits or Health Insurance Plan.  Tenure with the company can be another factor in deciding what to contribute.  Longer tenured employees can enjoy more compensation.  As long as it passes the fairness test with all employees in the same control group, companies are compliant.

By | 2018-03-18T17:14:59+00:00 July 10th, 2014|Uncategorized|0 Comments

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