Trump ping pong remix4/9/2023 ![]() QSEHRA allows business owners to reimburse employees tax-free for individual health insurance premiums and medical expenses. The tax credit is up to 50% of the costs you pay for your employees premiums.Ĭonsider a Health Reimbursement Arrangement (HRA)Ī new law passed in December called the 21st Century Cures Act prompted Congress to create a special kind of HRA for small businesses called QSEHRA (Qualified Small Employer Health Reimbursement Arrangement). You must pay for at least 50% of your employees premium costs. You may qualify for the Small Business Tax Care Credit if you have fewer than 25 full-time employees who make on average less than $50,000 a year. Don’t be the guy that says “we used to cover 80% but now we can only cover 70%”- your employees will get really disgruntled really fast. You will be the hero when you announce the new coverage. As your business grows, you can increase your coverage to 70%. Start with what you can afford, say 60% coverage. It would be great to tell new hires that their health plan covers 80% of medical expenses, but for a startup that coverage is not realistic. The Affordable Care Act (ACA), while it remains the law of the land, requires all plans to cover the same essential health benefits, the only difference between plan levels (bronze, silver) is the percentage that is covered by the plan versus out of pocket from the employee. Stick to an EPO or HMO plan which requires patients to utilize a doctor network to help minimize costs. A simple bronze or silver level plan will be sufficient, with monthly premiums averaging $300-$400. Most millenials are relatively young and healthy (i.e., infrequent healthcare users), so you do not need an extravagant plan with all the bells and whistles. Health benefits for startups are no different - and there are ways to do this without breaking the bank. Millenial employees consistently rate health benefits as one of the benefits they value most. So how do you recruit the best talent to grow your business from startup mode to successful? I’ll give you a hint: it has nothing to do with trendy perks like beer carts, massages or ping pong tables. You have a million dollar idea and a whole lot of work ahead of you.
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