What You Need to Know About Insuring Part-Time Employees
At Sackett & Associates Insurance Services we provide affordable group insurance coverage to help business owners and their loyal employees to thrive. There can be so much confusion surrounding recent insurance laws and requirements for coverage under the US Affordable Care Act. Some employers have questions surrounding the rules for providing part-time workers with health Insurance. The following guide informs you on the rules and benefits of coverage for part-time staff members.
ACA Guidelines for Offering Health Insurance to Part-Timers
According to the Affordable Care Act, employers with 50 or more fulltime staff members working 30 or more hours per week must offer health insurance to each of those individuals to avoid paying a penalty fee. Part-time workers, however, are not entitled to this same coverage unless an employer chooses to offer employee benefits. Should you choose to provide health insurance coverage to part-time staff members, the following basic rules will apply:
Determine the terms for which you will provide health coverage and put them into writing.Provide equal plan availability to all part-time employees who fit within your written guidelines for part-time coverage.
In providing health benefits to individuals who do not work fulltime, it is essential to set eligibility requirements and stay consistent across the board. While some companies may opt not to provide coverage for workers under 30 hours, there are some benefits to offering benefits to all staff members.
Benefits of Providing Coverage to All Employees
While many companies see employee health benefits as an expense and burdensome requirement, many of today’s business owners are choosing to provide health coverage to all of their staff members. While the initial expense may appear as a disadvantage, the long-term benefits of offering employees health insurance for companies and their workforce can be numerous.
Better Job Performance
Are you looking for ways to bolster workplace motivation and overall employee performance? One way to do this is to help your staff feel good. Providing benefits makes employees feel valued and also allows them to take care of their wellbeing. Employees with health coverage are more likely to perform better because of the following factors:
Lower stressFewer sick daysHealthier, happier overall state
Improved Recruitment and Employee Retention
One large expense business owners see across industries is the cost of hiring and training new workers. With part-time employees, turnover may feel inevitable. Hiring and on-boarding a new staff member can cost months of salary just to get them integrated into the work environment. By giving part-time team members health coverage you may motivate them to stick around and feel needed in their role.
Numerous Tax Benefits
As with all employee health care plans, employers can deduct the cost of part-time employee health benefits from their annual tax forms. For small business owners who wish to help their part-time staff, the ACA now includes provisions which provide tax credits to businesses who give their employees these health benefits.
To learn more information on the pros and cons of insuring part-time employees, contact us at 707-823-3689. Like us on Facebook, find us on LinkedIn, and subscribe to our blog.
