FAQ - Can we help employees with their market Health Plans

FAQ - Can we help employees with their market Health Plans -

Since enroll more employees? Health plans through the health insurance marketplaces, it is customary to ask for small business owners, CEOs and HR professionals: "We can staff with the cost of market health plans help?"

If you have asked this question, you are not alone. There are more than 3.3 million small businesses in the US who do not offer traditional health insurance for their employees -. Primarily because of the cost

The good news is that the staff can now buy affordable health insurance on the individual health insurance market places as well, offered if not better than traditional employer health insurance ,

and because of the new advantages of the individual health insurance, and the unsustainable offered cost employer health insurance, most small businesses are adopting programs staff to help with the cost of its market health plans - instead of health insurance to a group contribute

at the same time there is need to practice. Questions about how to help with employee market plans, "the right way." Here are two possible options for employees with their health plans help

Two options for helping employees with their market Health Plans

There are two main options for the employees and their market health plan to help .: health insurance remuneration and a reimbursement plan

option # 1 :. Health insurance stipend

With a health grade, all similarly situated employees receive a fixed, taxable stipend individual health insurance to buy, if they actually buy health insurance. The monthly employee contributions are usually added to his or her paycheck. At the end of the year the employees receive a form showing the amount of their salaries, which they considered income report on his personal income tax return.

Advantages: Supplements Not a group health plan No compliance issues Very simple and easy administration (automatic settlement)

disadvantages: company is required to pay income tax on reimbursement (7.65%) The employee must refund as income (20-40%) claim [get employees money regardless of whether they use it to a health insurance premium [1945024[

option # 2: The billing plan

with a repayment plan, all similarly situated employees a fixed amount of granted buying individual health insurance, but only receive money when they actually buy health insurance. Employees buy their own individual health insurance and prove their employer (or the third party of the employer). Employees receive the monthly payments to the allowance amount to be added to their content is typically tax-free (optional)

Pros .: employee expenses before reimbursement It feels like a real, structured health benefits program tax-free free ~~ POS = HEADCOMP optional must demonstrate to employees (20- 40%) There are no payroll taxes for employers optional (7.65%)

disadvantages: There is a health plan * group the employer shall take steps to ensure compliance with the group plan rules measures

* a refund plan is a group health plan, and is in compliance with IRS, ERISA , HIPAA, ACA market reforms and other applicable regulations. To ensure that your arrangement corresponds, and easy to respect, to use a refund software vendors. A good software vendors have a paperless plan setup, seamless payroll integration, online filing reimbursement request, quick claim processing and real-time alerts through every step of the refund process ... make it your HR managers easy and for your employees.

Regardless of whether your small business uses Option 1 or Option 2, your small business has a way employees at their market to help health plans, and offer valuable health benefits.

Questions? Leave a comment below.

Tweet