Health insurance benefits enrollment for business can be tricky. It can feel downright overwhelming. Health insurance benefits are a big decision for any small business owner, However, deciding on a health insurance plan for your small business is crucial. Picking a plan that meets state and federal compliance requires knowledge and time many small business owners do not have a lot of.
Do not go it alone during open enrollment, ClarityHR is here for your small business and our sister company AUI can collaborate with you to find the perfect option for your small business.
First, let us define what is a small business in the United States. For the purposes of the Affordable Care Act, a small business is one that has fewer than fifty full-time equivalent (FTE) employees. Businesses that meet these criteria are not required to provide health insurance under the ACA. Small businesses are also not subject to penalties for not offering coverage.
However, we all know that attracting and keeping good employees is important. Offering benefits may not be required, but most full-time employees expect even smaller companies to offer some type of health insurance benefits. That is where the team at ClarityHR can help you navigate all your options as a small business owner.
For instance, if you have less than 25 FTE employees, you may be eligible for a Small Business Health Care Tax Credit to offset some of the costs of providing coverage. No matter what the size of your business, all employers who provide self-insured health coverage to employees must file an annual return reporting certain information about each covered employee to the IRS and provide the information reported to those individuals.
Determine how much your small business can allocate towards employee health insurance. Consider not only the premiums but also deductibles, co-pays, and potential out-of-pocket costs for both your business and your employees. Also talk to a qualified health insurance broker about what tax credits you can take advantage of to offset some of the costs.
Do not go it alone or use Google to try and understand your options. Ask our team to help you explore different health insurance plans available in your region, such as group plans, Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), or High Deductible Health Plans (HDHPs). Compare the features, costs, and coverage options of each.
Our sister company AUI is here to help you with our experienced insurance brokers who specialize in small business health insurance. They can help navigate available plans, provide tailored recommendations, and assist with the enrollment process. You can even request a quote with a knowledgeable broker on the AUI website HERE.
ClarityHR can help you develop a plan to survey your employees to understand their health care needs and preferences. Together with this information ClarityHR will be able to help employers find a plan that meets employees' requirements and is valued by them. Here is a great blog on the topic of Benefits Engagement from AUI.
Do not assume that your current plan is still the right one for your small business. Plans change yearly. Together with our sister company AUI, we can help you identify benefits beyond health coverage, such as dental, vision, disability, or life insurance. Offering a comprehensive benefits package can enhance your appeal to potential employees.
These accounts can be valuable additions to high-deductible health plans, allowing employees to set aside pre-tax funds for medical expenses and potentially reducing their taxable income. Our sister company AUI just wrote a blog on this topic. You can read it HERE.
Be mindful of enrollment deadlines to avoid penalties and ensure seamless coverage for your employees. Adhere to open enrollment periods or special enrollment periods for new hires or qualifying life events. For instance, the deadline for Employee Creditable Coverage Notices is October 15th.
Consider consulting with an attorney or a financial advisor specializing in employee benefits to ensure compliance and make informed decisions.
ClarityHR can help small businesses to stay informed on health insurance updates. Our team of HR professionals can help keep you informed about changes in health insurance laws and regulations. We believe it is important to regularly review your health insurance offerings to ensure they meet your employees' needs. If state or federal regulations change, small businesses need a partner like ClarityHR and AUI to keep up with regulations and inform you of your obligations. Compliance is key for all business owners.
Remember, offering competitive health insurance benefits can positively impact employee satisfaction, recruitment, and retention, contributing to the overall success of your small business even if they are not required by law. To learn more about collaborating with our sister company AUI Click Here. To get help with HR compliance around health care benefits and options, contact ClarityHR today!