With the costs of healthcare on the rise, offering group health plans just isn’t an affordable choice for most painting contractors. But it’s never been more important to help shoulder the cost of sky-high premiums for the individuals on your team, and competitive benefits packages prove to be one of the most effective recruitment tools year after year.
Luckily, there’s a new type of tax-advantaged arrangement called a QSEHRA, specifically designed to help painters, contractors, and other small businesses with less than 50 employees afford health benefits for their team. By allowing tax-free reimbursement of premiums and/or medical expenses, this HRA helps small businesses roll out company-wide benefit plans that work with their budget. The result is small businesses like yours can enjoy the same favorable tax treatment as a big company group plan with a lot less hassle. It’s not surprising so many small businesses are jumping on board.
This type of arrangement makes sense for the nature of your business—you choose the amount that works for you to reimburse through payroll, you don’t have to offer it to seasonal workers, and it’s up to you whether you offer it to part timers. Plus, your employees still get to choose their own individual health plan that works best for their families. It’s lean, it’s flexible, it’s tax-advantaged, and it’s budget-friendly.