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Ashley PoynterOct 132 min read

What are the tax benefits of small business health insurance plans?

Updated: Oct 13

So you’re thinking about offering something similar to a small group plan through your small business? Excellent! There are many different reasons that people might choose to offer health insurance to employees of their small business. One of the biggest reasons is that there are ample tax benefits to offering health insurance plans through a small business.

Tax benefits to offering health insurance

For starters, most health insurance-related expenses that employers incur (for both employees and their own health insurance costs) are completely tax-deductible as part of regular business expenses for both state and federal income taxes. Yep, that's one of the tax benefits to offering health insurance.

In some cases, it may also be possible for employers to set health insurance up so that employees can also pay premiums with pre-tax money. Not only can this increase each employee’s take-home pay, but it also lowers the amount of taxable income for each employee. Additionally, employers may be able to contribute to employees’ premiums with pre-tax money.

Employers may also be able to qualify for small business healthcare tax credits through the Affordable Care Act, which can help to offset the cost of insurance. This is a sliding scale credit that you can read more about here. . If you're on the fence, considering the tax benefits to offering health insurance can be helpful!

Decent healthcare for small business owners

We know that Open Enrollment for the Marketplace is a bit away, but Decent now offers health plans for small business owners and their employees! Yep, we’ve expanded our offerings to help small businesses get covered. Now, small businesses can get in on the Decent healthcare goodness, too. We launched ACA-compliant health insurance plans priced at 40% below market with a Net Promoter Score 5x industry average. Here’s what you’ll love:

  • Free concierge primary care
  • $0 medical deductible plans
  • Austin, TX based support team

Decent has rethought health insurance from the bottom up in order to get you the best pricing in the market for ACA-compliant plans. Our revolutionary structure allows us to offer small businesses comprehensive plans at prices closer to those previously only enjoyed by large self funded company plans.

Ready to get started with the coolest health insurance in Texas? Rad. Get more information here.