The federal and county system favors companies that properly cover their employees health needs. They have proven their support with some excellent tax features that can deliver big savings to employers in 2016.
Deducting Premiums For Employees
It is possible to set up a plan that actually increases the amount the employee pays for their premium. All strategies are set-up before applying the taxes, which is called pre-tax. The basic idea is that the premium is deducted from an employee’s paycheck prior to the deduction of state and federal taxes. It traditionally means that a higher portion of a paycheck is going to a premium. The federal and state taxes come out of the total of that remaining amount. In turn, this increases the employee’s take-home pay, which would receive very little contention from employees. It also decreases the amount they can be taxed for. It is a strategy that can pay off wonderfully if implemented properly. A Group Medical Insurance provider can help organizes these details, but an accountant will likely come and fill in for the actual filing and organization.
Greater Full Write-Offs
All expenses related to healthcare can be 100% tax-deductible, and that is a feature that has encouraged a lot of employers to boost the quality of their health insurance to benefit the business and their team. Group Medical Insurance will traditionally receive a greater write-off potential because it is a full package.
50% Of Total Healthcare
There is another wonderful little addition to the employer tax code. A tax credit of up to 35% is available for employers who pay a total of 50% or more of the health expenses. This is exclusive to the healthcare premiums. The company also needs to have no more than 25 total full-time employees.
These tax credits are fantastic for group care because group care is generally a 50% total expense for the employer. They already account for that aspect of the coverage. It also requires the income of about $50,000 a year for the average employee. Reach out to the team at Nepainsurance.com for more on group coverage, individual policies, and new tax changes in 2016 as they relate to medical expenses.
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