Many people that own companies are confused when it comes to potentially offering Health Insurance in San Jose or Palo Alto. There is also a ton of misinformation out there when it comes to ObamaCare compliance, and how it affects smaller employers. First off, there is no requirement for companies that employ less than 50 employees to ever offer any type of Employee Benefits or Health Insurance. Now, having said that, if you are a smaller employer and you do offer Health Insurance to your employees there are a few things you need to know, to stay out of trouble.
Tips to keep smaller employers out of trouble when offering Health Insurance
When you offer Health Insurance to your employees, you have to keep in mind that it has to be done fairly. When I say fairly, I mean that it has to pass the “non-discrimination” test. That means that the offer of Employee Benefits or Health Insurance to employees must be done equally. If you don’t, you run the risk of finding yourself in front of the Labor board. You can’t offer better Health Insurance to highly compensated employees without offering it to everyone else. There are other ways to compensate the management that falls in line with the law. Another tip is to make sure that your contribution is in line with the law and again, done fairly. The employer is only required to pay for 50% of the employee only rate, not their family.
It is much cheaper than many employers think to offer Health Insurance to their emloyees
With the contribution being as low as 50% of the employee only premium, that equates out to about $150 a month per employee. The employee would be responsible to make up the difference in the monthly cost. If you are trying to attract and retain employees, Health Insurance and Employee Benefits is one of the best ways to do that. Studies have shown that Employee Benefits and Health Insurance ranks a close second to wages, when it comes to people looking to be hired.
Brauer Insurance is not only an expert at Health Insurance, but we can help you with the compliance piece of the ACA or ObamaCare. We are a family owned and operated Employee Benefits agency specializing in Health Insurance.