Should You Offer Medical Insurance to Employees? Pros and Cons
Summary
Since you will be able to take advantage of this deduction, it may enable you to stay within the limit of 50 employees or less for whom you can qualify as a small-business owner and thereby avoid some heavy taxes on your income. If you do, your employees can get excellent medical insurance at a lower cost to you, meaning you can take advantage of government incentive programs. If you are required to provide your employees with medical insurance, this means that you will have to file extra paperwork for them and manage their accounts regularly. You may also need to hire an additional employee or outsource the task of processing claims so that there are enough human resources to handle all requests. In that case, you will be obligated to pay the premiums on their behalf, meaning that you will have more of your cash tied up in healthcare coverage rather than being available to put towards other company needs.