Making the decision to pay for employees' health insurance can help to improve morale and also help to recruit higher caliber employees. In order to pay for your employees' health insurance, you must find a group plan that fits your employees' needs.
Instructions
Pay Your Employee's Health Insurance
1. Obtain a group plan. Contact a broker to give you the costs of several different companies at one time or you can get quotes from individual insurance companies. Determine the plan that is right for your employees. Help the insurance carrier collect data on your current employees to obtain a risk rating. Understand, though, that this rating will determine the actual rates or premium for your business.
2. Decide whether you will pay a percentage of the employee's plan, or paying only for the employee but not his or her family. Determine employee contributions and, after creating a spreadsheet on how much employees will contribute, deduct that amount from their paychecks. Let the insurance companies help you. Once you figure out how much will be taken out, set up up your payroll system to deduct the amount as a health insurance expense. This is considered a pretax expense.
3. Pay your monthly group health insurance bill. Expect to be billed monthly for the entire premium. Use the money collected through payroll deductions to cover a portion of the bill. Understand that the rest of the bill is your contribution to your employees' health plan.
