A New Way For Painting Business Owners To Save Money On Health Insurance
Nov 9, 2018 | By: Bookkeeping For Painters
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.
It’s smart. A QSEHRA uses tax benefits to help small businesses. Contributions to QSEHRA are tax-free. That means you aren’t paying payroll tax and your employees aren’t paying income tax.
Boosts retention. You probably know firsthand that the finished product is only as good as the team—that’s why hiring the best talent in the industry is so important. A competitive benefits package helps you do that.
It’s personalized. The health plan one employee needs isn’t necessarily the plan for everyone. Employees can choose the best plan for them instead of being looped into a group plan that might not cover their doctors, their prescriptions, or their health needs.
Saves time. Selecting and administering a group plan takes a lot of time and effort. As a startup, you’ve got better things to do. Choosing the right QSEHRA administration platform will save you time down the road as well. Take Command Health’s QSEHRA platform onboards employees, generates plan documents, ensures that you remain compliant, and makes tax time a breeze.
Saves your budget. These costs are predictable. Unlike a group plan that might creep up in costs year over year, you control the amount contributed to a QSEHRA. It’s on your terms and within your budget. Wondering what happens to the leftover funds if they aren’t used? It stays with the business and doesn’t roll over. That means you aren’t responsible for funding a bunch of accounts; you only pay out when an employee submits an expense for reimbursement.
It’s flexible. You can design your QSEHRA to fit your needs and your budget. Want to just reimburse for premiums? Great. Want to add qualified medical expenses to the deal? Even better. Want to scale the contributions based on age, status, or family size? You can do that too (as long as it’s fair!).
How to get started
So are you wondering how to administer a QSEHRA? That’s where Take Command Health comes in. They do all the heavy lifting—taking care of setup, onboarding your team members, ensuring compliance, generating documents, and making tax time easy and simple. In fact, for a limited time, you’ll receive a 20% discount with code “ONLINEBOOKKEEP” at checkout!
Want to learn more?
Take Command Health’s new QSEHRA Guide is the ultimate resource for learning all about QSEHRA perks as well as the rules, the requirements, how to set it up, and how to choose an admin tool. For any other questions, Take Command Health’s team of small business experts is on hand and more than happy to help.