Plumbers May Be Magicians With Pipes But Getting Health Insurance Can Be a Mystery
Small plumbing companies in Colorado Springs need to keep their employees and crews healthy, happy, and on-the-job, which is why the owners of small plumbing companies get health insurance for their workforce. But while experienced plumbers may be magicians with a wrench, the mysteries of group health insurance in Colorado can be confounding and overwhelming.
Fortunately, Colorado Springs plumbing business owners don’t need to go at it alone when trying to understand the best way to cover their workers’ healthcare needs. At Preferred Insurance, our independent insurance brokers work with plumbing companies and other small businesses up and down the Front Range to get them the best coverage at the most affordable prices. If group health insurance for your small plumbing business is on your to-do list, we can help you get the job done.
When Plumbing Companies Get Health Insurance, How Does That Work?
Health insurance companies such as Anthem, KaiserPermanente, Aetna, and others offer several plan options specifically tailored to the needs and budgets of smaller businesses. The business signs up and purchases the insurance for the “group,” which consists of employees and their dependents. Plans can cover full-time employees only or, as more companies are doing, they can provide coverage to part-time employees as well.
A plumbing business that enrolls in a Colorado group plan will typically pay the health insurance company the full fee for the plan while also deducting contributions from the paychecks of employees who participate in the program.
How Small is Too Small for Group Health Insurance Coverage?
Many plumbers who run their own business may presume that they’re too small or have too few employees to qualify for group coverage. But even if your plumbing business has just one full-time employee (who works at least 30 hours per week and is not an independent contractor, spouse, relative, business partner, or part-owner of the company), then you will likely qualify for group health insurance. If, however, you are self-employed with no employees (even if you engage plumbers as independent contractors from time to time), group insurance probably isn’t an option.
That said, the law is very nuanced in this regard. Meeting with a qualified small business health insurance broker in Colorado Springs provides the best way to confirm that your company can explore and obtain group coverage.
Isn’t it Too Expensive for Small Plumbing Companies to Get Health Insurance?
Companies with fewer than 50 full-time employees are under no obligation to offer their employees health insurance coverage. Knowing that they don’t have to do so, many small plumbing business owners don’t even consider group health insurance under the belief that it will simply cost too much money. In reality, plumbing companies can take advantage of significant tax savings and reap other intangible benefits that far outweigh the amount they pay out in premiums.
All health insurance-related expenses paid by Colorado Springs business owners are 100 percent tax-deductible under both federal and state law. This holds true no matter what type of entity your plumbing company is, whether an S-corp, C-corp, LLC, or partnership.
Additionally, the Affordable Care Act (ACA) establishes small business healthcare tax credits of up to 50 percent of your premium expenses during any two-year period. Per IRS rules, plumbing companies can generally claim the small business health care tax credit if they:
- Have fewer than 25 full-time equivalent employees;
- Pay average wages of less than $50,000 a year per full-time equivalent (indexed every year for inflation);
- Offer a qualified health plan to employees through a Small Business Health Options Program Marketplace (or qualify for a limited exception to this requirement);
- Cover at least 50 percent of the cost of employee-only health care coverage for each employee.
As with most things tax-related, you should always consult with both an experienced health insurance broker and tax professional to understand how your insurance program impacts your plumbing company’s tax obligations.
Plumbing Companies that Get Health Insurance can Also Attract and Retain the Best Talent
The fortunes of a Colorado plumbing company will rise or fall based on the quality and value of the services their plumbers provide. That means that the competition between plumbing businesses to attract and retain the most skilled and talented plumbers can be fierce.
Offering group health insurance to your plumbers and other employees gives your company a leg up in that competition. Plumbers want to protect their health and that of their families. When a potential employer has group coverage, they show that they share the same values. That is where the best plumbers will want to go to work each day.
Preferred Insurance: Your Partner For Small Business Health Insurance in Colorado
Preferred Insurance, an experienced Colorado Springs business health insurance broker, works closely with plumbing companies of all sizes to develop and implement group health insurance programs that make sense and make wellness a priority. Our knowledgeable and accessible representatives are here to answer your questions and provide solutions that can keep you and your workforce safe and healthy. We are a locally owned and operated group health insurance broker that offers free quotes in less than 48 hours.
Call Preferred Insurance today to schedule a free consultation about your small business health insurance needs.