Health insurance is
the most important and valued fringe benefit to employees. For employers,
providing it is a sound business decision:
- Health insurance premiums that
your company pays are fully tax-deductible as a business
expense and are non-taxable income for employees. This tax deduction may be
thought of as a discount to the cost of the
- Health insurance
payments are excluded from base payroll when calculating an employers
Medicare and Social Security payments. An equivalent amount paid in wages would
be subject to Medicare and Social Security taxes.
- Health insurance
coverage gives employers great access to the price reductions that
insurance companies negotiate with doctors and other health care
insurance may help employers:
- Recruit high-quality workers
- Reduce staff turnover
- Reduce the cost of absenteeism
- Limit disability and workers compensation
insurance coverage to your employees may seem like a challenge, but it is
not beyond your reach. If you are a small- or medium-sized business owner or
oversee decisions about health care benefits for your company,
HealthInsurance.Alabama.Gov can help you make an informed
decision about purchasing employer-sponsored
insurance and help you navigate through the purchasing process.
HealthInsurance.Alabama.Gov will help you answer such
- What types of
insurance plans are available to my company?
- What steps do I need to go through to purchase
- What will be my estimated costs for purchasing a
health insurance plan?
- What will be my estimated tax savings?
- What other health benefit options are available to
Most large employers do offer
health insurance benefits. However, those with a lower-paid workforce face
low employee participation rates because employees do not think they can afford
the employee cost share of the
premium. HealthInsurance.Alabama.Gov offers tips to
encourage employer participation in
health insurance benefits and other health benefit options.