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Why Should I Offer Health Insurance and How Much Can I Ask Employees to Pay?
March 26, 2008
There are many benefits to providing health insurance to employees, including:
1) Reducing the amount of taxes you and your employees pay
2) Attracting and retaining high quality employees
3) Reducing business disruptions and the costs associated with employee absenteeism and turnover.
How much can I get my employees to pay?
On average, small businesses pay 75-100% of the total insurance cost for their employees and nothing for their dependents (some organizations such as the military pay 0-50% for dependents). I’ve read that you can ask employees to pay more than 25% but before you do you need to make sure you comply with the regulations in your state. Employees pay whatever part of the premium you don't pay through payroll deductions. Each state, of course, has different laws limiting the amount an employee pays for an employer-provided insurance plan. Before asking an employee to pay contact a local health insurance agent.
Posted by Shanu Singh Guliani on March 26, 2008 | Comments (0)
