For small business owners and entrepreneurs, the idea of offering health insurance seems far off. Only big companies and corporations offer health insurance, right? The reality of the matter is that six out of ten small businesses in Canada offer some form of health insurance to their employees.
So, even if a small business only has a handful of employees, they can still offer health insurance and other benefits.
It’s important to note that businesses with less than fifty employees don’t receive any tax penalty for not offering health benefits. However, just because a small business owner won’t suffer from extra taxes if they don’t provide health insurance, doesn’t mean they shouldn’t offer any at all. It’s actually quite beneficial to entrepreneurs and small business owners to offer health benefits.
There Is Higher Retention Of Employees Who Receive Health Benefits
In a 2011 study, 59% of people surveyed said they would rather keep their company benefits than receive 10,000 dollars. Small businesses that are thinking of offering health benefits should consider several factors before choosing a plan; however, here are three of the most vital:
- First, they should consult with a broker to decide what plan is best for their business. For many small businesses, an ASO plan is very helpful. With this kind of plan, small business owners only pay for what their employees use.
- Secondly, small business owners should assess the needs of their employees. A company with mostly employees over 50 will need different coverage than a company with mostly employees under 30.
- Finally, small business owners should start with a lower coverage and increase annually as they can. It’s better to start low and increase, than to start high and have to offer less coverage later.
Many insurance companies, like Benecaid, offer custom benefits that can fit any budget, even for small businesses. If you’re a small business owner, contact a Benecaid partner to start health insurance for yourself and your employees!