Sourcing the right employees is a difficult process for most companies but retaining them for the long term is an equally challenging job. Your workforce is the pillar of your business and to attract and engage them, you have to offer them lucrative compensation, rewards and other benefits.
Investing in group health insurance in Colorado is really a good idea to build your organization’s image as anemployee-oriented company. Knowing that group health insurance helps in medical emergencies can be a huge financial help for your staff, your staff and their family members appreciate that they are safeguarded by your company. In return, it motivates your workforce to perform better, improves overall productivity and builds the reputation of your company.
Group health insurance in Colorado provides hassle-free, instant coverage from day 1 of issuing the plan. Your employees and their dependents don't need to undergo pre-policy medical examinations and can enjoy medical coverage for pre-existing diseases without a long waiting period. Health insurance brokers in Denver said that many treatments, illnesses and medical conditions are taken care of by the group health insurance plan including maternity.
In addition to all these advantages, companies can avail of tax benefits on the premium paid for group health insurance in Colorado.
Tax Benefits for Employers on Group Health Insurance
As per the government guidelines, certain tax benefits will apply to the group health insurance plan premiums paid by companies. Health insurance premium payments are termed as a business expense, which is included in the profit & loss account of the company and this tax benefit is termed as employer entitlement.
When the company contributes partly toward group health insurance premiums and the remaining amount is paid by employees themselves, only the amount paid by the company would be considered as business expenses.
Medical expenses incurred by the sole proprietorship companies would be considered a disallowable expense but medical facilities provided to their staff members would be exempt from taxation.
Tax Benefitsfor Employees on Group Health Insurance
According to a group of health insurance brokers in Boulder, group health insurance premiums paid completely by the company cannot be claimed for a tax deduction by employees. If the part payment is done by employees, they can avail of tax exemption on the amount paid by them towards group health insurance.
Employees can get benefits of health insurance tax exemption on premiums paid for self, spouse and dependent children.
Takeaway
The widespread pandemic has reinforced the importance of health insurance coverage for companies as well as employees.Investing in group health insurance in Colorado offers many benefits to companies as well as employees. Offering group health insurance to the workforce will create a brand image of the company and the company will also get tax benefits on the premium paid for group health insurance. Employees, on the other hand, would feel secure and can focus on better performance and production. In short, investing in group health insurance is a win-win situation for the company and its employees.
