As we continue our three part series Best Practices For Your Nanny Agency, the focus shifts from financing your growing business to employee benefits, specifically health care.
While small business owners (defined as companies employing 50 people or fewer) are not required to offer a health plan, there are many benefits in offering employees group health insurance. Whether you’re an established business or a new agency, recruiting the best agency staff candidates requires other incentives than salary- offering a strong health insurance package will attract and retain the employees you want working for you. According to ehealthinsurance.com, a widely respected source for comparing and purchasing insurance policies, employers typically cover at least 50% of each employee’s monthly premium. Since no one can be turned down based on medical history, group coverage also protects workers and family members who might otherwise be uninsured.
As reported by the U.S. Small Business Association, small business owners pay an average of 18% more for health care than large corporations due to administrative costs. Under ObamaCare, small business owners will be qualified for the SHOP Marketplace, which is part of each state’s health insurance marketplace.
Some of the key components of the Small Business Health Options Program (SHOP) are:
- You control the coverage you offer and how much you pay toward employee premiums
- On your own or with the help of a broker, employers can compare the health plan that’s right for your business
- You may qualify for a small business health care tax credit worth up to 50% of your premium costs. Tax reductions are based off of the number of full-time equivalent employees and their average annual wages, not solely on the number of full-time employees
- You can still deduct from your taxes the rest of your premium costs not covered by the tax credit
- Beginning in 2014, the tax credit is available only for plans purchased through SHOP
INA’s Latest Publication & Conference Details
If you are a nanny agency business owner looking to plan to profitably exit your business, download our free INA Nanny Agency Exit Strategy Guide.
Are you planning to attend the INA’s 29th Annual Conference, March 27 – 30 in Los Angeles California. In addition to our exciting Keynote Speaker, we are also offering 3 high powered workshops by professional marketing strategists and coaches. This is also an excellent opportunity to peer network with nanny agencies from around the world. Registration opens January 15, 2014.
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