1. Would you like to be able to hire a higher caliber employee to help you build your business?
Candidates with better qualifications are going to work for the larger firms because they can get a better compensation package. Most larger firms offer a benefit package. With a Small Group Health Plan for your business, you will now be able to better compete for that higher caliber employee.
2. Would you like to write off your Small Group Health Plan premiums?
Some employers today are giving their employees an “allowance” for health insurance. The employee may go out and buy any plan they want and the employer may be giving them, for example, $ 250 per month to pay towards the cost. However, the employer may not know that doing this is a violation of California Law! When an employer is contributing towards the cost of an employee’s health insurance, the law requires the use of a Small Group Health Plan (AB1692). The $ 250 being paid to the employee would have to be included in each employee’s paycheck as taxable income. The employer would pay payroll taxes and workers compensation insurance on that additional money. With Small Group Health Insurance, all costs are eligible tax deductions as ordinary business expenses.
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3. What special rules are there for Small Group Health Plans in California businesses?
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4. May there be a waiting or probationary period before a new employee becomes eligible for the plan?
When hiring a new employee, the employer does not know if he is going to work out. Most companies impose a 60-day waiting period. The new hire will receive coverage the first of the month following the 60th day after being hired. However, the employer may allow coverage to start as early as the beginning of the month following hire date, but no later than 90 days.