Before you breath a sign of relief, let’s at some reasons why you may WANT to offer health insurance to employees
if under 50.
The vast majority of companies that offer group health benefits do so not because they have to.
They see the benefit in doing so and there are tricks to keep the costs down.
Before we get into the requirements for 50+ employee companies, let’s look at the key reasons most companies offer coverage.
It’s tax deductible!
This is a huge advantage to group health coverage. The employer can write off the premiums paid.
With a POP 125, employees can pay with pre-tax money for their share and the employer can save on payroll tax.
You can generally cannot deduct employer contribution towards an employee’s individual health plans.
In fact, there can be huge penalties from the IRS for doing so.
$100/day/employee up to $36,500 per year.
Read that again!
It’s definitely a message from the IRS that they mean business.