Benefits for Part-Time Employees - What's the Deal?
Health insurance and other benefits form a key part of the compensation package most employers offer their workers. In some cases, providing insurance is required by law. However, many organizations employ at least some part-time team members. While you do not need to offer these employees the same benefits as full-time staff, you may want to consider doing so anyway.
The Rules Regarding Part-Time Employee Benefits
Under the current rules, governed mostly by the Affordable Care Act, employers with at least 50 full-time equivalent employees must offer health insurance to all workers who work at least 30 hours per week (making them full-time). Anyone who works less than this is considered part-time and thus does not need to be offered health insurance.
You can optionally provide them with health insurance. However, the ACA requires that part-time employees be offered health insurance through a consistent written policy. In other words, you can’t pick and choose who gets health insurance, although you can set a minimum number of hours to receive it.
Reasons Why You Should Consider Offering Benefits to Part-Timers
Many employers are hesitant to offer insurance or other benefits to part-time employees, considering doing so to be an unnecessary expense. However, there are some good reasons to consider it:
In other words, there are substantial financial and productivity advantages for offering insurance and other benefits to part-time employees. If you take a holistic view of the decision, it may be financially advantageous to offer benefits.
Get Group Health Insurance
Whether you choose to extend benefits to part-time employees or not, it pays to find the right insurance provider. Sackett & Associates Insurance Services is a group health insurance broker in Santa Rosa that can help you find the right coverage for your business. Contact us today to learn more and get started.