Employee Benefits for Part-Time Employees
For most organizations, employee compensation accounts for the largest share of company expenses. However, employees also represent a company’s greatest asset. Because of this, it is important to not only compensate employees, but to do it well. This includes not just a competitive base salary and bonuses, but also employee benefits, such as health insurance.
Most companies are willing to do this for full-time employees, but some may be reluctant to extend those benefits to their part-time workers. However, proactive businesses that understand the importance of investing in all their workers are changing this traditional model of compensation. Here are a few reasons you should consider doing the same.
Companies Benefit from Employee Benefits
Health insurance and other employee benefits are often marketed to employees as being primarily advantageous to them. However, as many employers know, they stand to benefit from a healthy workforce as well. According to the CDC, employers face $225.8 billion in productivity loss due to absenteeism. This is often due to illnesses and chronic diseases that could have been prevented or treated in a timely manner if the workers had access to a comprehensive health care plan.
Prevent Health Care Assessments
According to the IRS, companies that meet Applicable Large Employer criteria must provide adequate and affordable health insurance benefits to their employees. Failure to do so may lead to an assessment, which may then force the company to offer health benefits even to part-time employees. The IRS considers a corporation an ALE if it is staffed by 50 full-time employees or the equivalent combination of part-time and full-time employees. If you have ever become unfavorably entangled with the IRS before, then you know the old cliché of prevention is better than cure proves true here.
Higher Tax Deductions
The more you spend on health insurance and other benefits, the more you can claim in tax deductions for your business. This includes contributions to both full and part-time employees. Tax deductions help to reduce your annual, quarterly and monthly tax bills. However, be sure to confirm with your accountant to ensure your company remains in the green. Tax benefits are also passed on to the employees, because the IRS does not include health benefits when calculating employees’ wages.
Attract and Create Better Talent
Truly talented workers are in high-demand and will have more than their fair share of choices in the job market. Often, this includes working for themselves, and thus, becoming a potential competitor for your business. To ensure the best of the best is a part of your workforce, you must offer competitive compensation packages that attract them, and health insurance plans top the list. In addition to this, according to Forbes, good health boosts productivity. This provides the perfect incentive to turn even your lowest producers into happy, healthy and engaged workers.
For more information on how providing small business health insurance and other benefits to all your employees is beneficial to your business, see more articles like this in your inbox or on your social media feed by liking us on Facebook, following us on Twitter, adding us on LinkedIn and subscribing to our blog. To get the ball rolling, call Sackett & Associates Insurance Services today at 707-823-3689.