If you have ever worked for another company in New York, you already know that many employers offer health care insurance to those working for them. If you run your own business, what are your obligations for providing health care to your employees?
According to The City of New York’s website, you are not required to provide health insurance benefits if you employ fewer than 50 full-time employees. Like many small business owners, you might appreciate having such an exemption, since it could cost you less in terms of insurance premiums. However, before you decide not to offer benefits, there are a few other points you might consider.
Would it provide a valuable service to your employees to offer health insurance if you do not need to? The Affordable Care Act requires everyone in New York to have health insurance or pay a penalty. If their company does not provide insurance, they will need to shop for a plan on their own. Having an employer who offers insurance plans can be convenient and save employees money on premiums and deductibles, which may give you the benefit of loyal, satisfied and healthy employees. In turn, your long-term benefits could also include a reduction in the time, expense and hassle of recruiting and training new employees.
You may also have numerous health care tax credit and deduction advantages by offering health insurance to your employees. Whether you provide insurance for your employees if you run a small business is up to you, but it can help have a full picture of the pros and cons before you decide.