[vc_row][vc_column width=”1/1″][vc_ff_title el_type=”h1″ align=”left” title=”Pros & Cons of Employer Provided Health Insurance “][vc_column_text][/vc_column_text][vc_column_text]In 2015, most employers will either have to provide their workers with health insurance or pay the applicable fines. The decision whether or not a company will offer employees health insurance comes with many pros and cons and is a lot more complicated than simply how it affects the bottom line.[/vc_column_text][vc_ff_title el_type=”h2″ align=”left” title=” Does your company plan on providing health insurance? “][vc_accordion type=”with_icon”][vc_accordion_tab title=”Yes, it does! ” icon=”icon-heart” opened=”no”][vc_ff_title el_type=”h1″ align=”center” title=”Employer”][vc_text_with_icon_1 icon=”icon-thumbs-up-alt” title=”Employer Pros”]• No ACA penalties
• Reduction in payroll taxes
• Tax deduction for health care contributions
• Valuable benefit for recruiting, retaining and employee morale.
• Net cost of contributing to coverage is less than the dollar amount of the contribution[/vc_text_with_icon_1][vc_text_with_icon_1 icon=”icon-thumbs-down-alt” title=”Employer Cons”]• Additional expense for providing coverage
• Potential cost increases from year to year
• Possible in-house administrative costs[/vc_text_with_icon_1][vc_divider show_line=”yes”][vc_ff_title el_type=”h1″ align=”center” title=”Employee”][vc_text_with_icon_1 icon=”icon-thumbs-up-alt” title=”Employee Pros”]• Employer contributes to the cost of the plan
• Employer contribution is not taxable to the employee
• Employee portion can be paid pre-tax through a cafeteria plan or deducted reducing taxable income[/vc_text_with_icon_1][vc_text_with_icon_1 icon=”icon-thumbs-down-alt” title=”Employee Cons”]• Ineligible for subsidies if coverage meets requirements[/vc_text_with_icon_1][/vc_accordion_tab][vc_accordion_tab title=”No, But We Will Offer Additional Compensation” icon=”icon-usd” opened=”no”][vc_ff_title el_type=”h1″ align=”center” title=”Employer”][vc_text_with_icon_1 icon=”icon-thumbs-up-alt” title=”Employer Pros”]• Fixed contribution expense, not subject to premium increases[/vc_text_with_icon_1][vc_text_with_icon_1 icon=”icon-thumbs-down-alt” title=”Employer Cons”]• Increased employee compensation
• Increased payroll taxes – amounts paid as compensation are subject to these taxes
• ACA penalties for companies with 50+ employees[/vc_text_with_icon_1][vc_divider show_line=”yes”][vc_ff_title el_type=”h1″ align=”center” title=”Employee”][vc_text_with_icon_1 icon=”icon-thumbs-up-alt” title=”Employee Pros”]• Employer helps offset insurance premiums
• Increased likelihood of being eligible for subsidies[/vc_text_with_icon_1][vc_text_with_icon_1 icon=”icon-thumbs-down-alt” title=”Employee Cons”]• Employee responsible cost of coverage
• Employee responsible for securing and managing own plan
• Employer contribution is taxable
• Total Employee taxable income is increased
• Employee premium increases not covered by contribution[/vc_text_with_icon_1][/vc_accordion_tab][vc_accordion_tab title=”No, Definitely Not. ” icon=”icon-frown” opened=”no”][vc_ff_title el_type=”h1″ align=”center” title=”Employer”][vc_text_with_icon_1 icon=”icon-thumbs-up-alt” title=”Employer Pros”]• No direct financial cost[/vc_text_with_icon_1][vc_text_with_icon_1 icon=”icon-thumbs-down-alt” title=”Employer Cons”]• Increased difficulty recruiting new employees
• Increased costs associated with higher employee turnover
• Inferior workforce attributed to lack of benefits
• Negative impact on employee morale and retention [/vc_text_with_icon_1][vc_divider show_line=”yes”][vc_ff_title el_type=”h1″ align=”center” title=”Employee”][vc_text_with_icon_1 icon=”icon-thumbs-up-alt” title=”Employee Pros”]• Increased likelihood of being eligible for subsidies[/vc_text_with_icon_1][vc_text_with_icon_1 icon=”icon-thumbs-down-alt” title=”Employee Cons”]• Employee responsible entire cost of coverage
• Employee responsible for securing and managing own plan
• Employee subject to penalty if insurance is not obtained
• No tax benefits[/vc_text_with_icon_1][/vc_accordion_tab][/vc_accordion][/vc_column][/vc_row]