A New Year’s Resolution For A Healthier, More Productive Workforce
If you value a more productive workforce and want to attract and retain top talent for that workforce, your Colorado company should prioritize group health insurance when preparing your budget for 2024. Even if your business is not legally required to provide health coverage for your employees because of its smaller size, there are good reasons to consider doing so anyway because of the many significant financial and intangible benefits of doing so.
When you prioritize group health insurance in your fiscal budgeting, you set your company up for workforce stability and continuity in 2024. You’ll make your company more attractive to high-quality job candidates and help keep current employees healthier, happier, and more productive. While your business will indeed be responsible for paying a portion of the premium for group coverage, offering coverage may also make your company eligible for substantial tax breaks that more than make up for those costs, given the many other upsides.
Here are four reasons your Colorado business should prioritize group health insurance in its 2024 budget:
Attracting Top Talent
Unemployment is at a record low, so companies compete fiercely for the best candidates. If you want to give your business an advantage in the quest for top talent, offering group health insurance is one great way to make your offer – and your company – more attractive to job seekers.
Most candidates themselves prioritize group health insurance when searching for new positions. They know how vital affordable, accessible healthcare coverage is for themselves and their families. When you include coverage in your benefits package and your competitors do not, your job offer becomes one they almost can’t refuse.
Retaining High-Performing Employees
Not only do you want to attract the best talent to join your company, but you also want to keep the high-performing employees you already have. Replacing employees can be expensive and time-consuming.
Your current employees will be far less likely to look for other opportunities and spare you the cost and burdens of the hiring process when they have the security of employer-provided health insurance coverage.
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Healthier and More Productive Workers
The whole point of health insurance is to make health care accessible and affordable. This includes the care and treatment needed after an illness or injury and the preventive care services that can reduce the chances of illness or injury in the first place. That means fewer sick days and improved productivity from your workforce.
The benefits to Colorado businesses that prioritize group health insurance also manifest themselves in employees who feel valued by their employers. Along with intangibles like providing premium coffee and tea in a great break room, providing health insurance benefits prove your company’s interest in and dedication to your employees’ health. This, in turn, inspires employees with more motivation and dedication to the company’s overall success.
Tax Benefits
Of course, not all of the benefits to Colorado companies that prioritize group health insurance are intangible. The tax advantages of offering group health insurance coverage can be substantial, especially for small businesses. Under both federal and Colorado law, all health insurance related expenses are 100 percent tax-deductible.
For small business owners in Colorado, providing health insurance to part-time employees can be even more beneficial. The Affordable Care Act provides tax credits of up to 50 percent of small business premium expenses during any two-year period. Per IRS rules, to claim this credit, companies must meet the following criteria:
- Have less than 25 full-time equivalent employees.
- Pay full-time or full-time equivalent employees each an average wage of less than $50,000 a year (indexed yearly for inflation).
- Offer employees a qualified health plan through Colorado’s Small Business Health Options Program Marketplace (SHOP).
- Qualify for a limited exception to the SHOP requirement.
- Pay for at least 50 percent of employee-only health care coverage costs per employee.
As with most things tax-related, you should always consult a tax professional and an experienced group health insurance broker to understand how providing group health insurance can impact the tax obligations of your Colorado small business.
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Preferred Insurance Can Help Your Business Prioritize Group Health Insurance For 2024
Helping Colorado small business owners prioritize group health insurance coverage – and reap the many benefits of doing so – is what we do best at Preferred Insurance. Our Colorado Springs group health insurance brokers have decades of experience helping companies develop a plan that fits employee needs and company budgets.
Small business owners like yourself receive our extensive group health insurance expertise and get the information they need without confusing jargon.
Are you ready to see how prioritizing group health insurance can benefit your business and your employees?
Schedule your free consultation with one of our experienced group health insurance brokers today
