Can We Write-off Health Sharing Expenses?
Is there anything better than a business tax write-off? Yes! A cost-saving tax write-off. Since small businesses often face the challenge of providing affordable healthcare benefits to their employees, we will present you with an affordable and comprehensive solution that will save you money and even better, be written off. The cost of traditional health insurance plans can be a significant burden, making it difficult for many small businesses to attract and retain talent. However, there is a lesser-known solution that offers tax advantages and cost savings: health care sharing. Let’s explore how health sharing programs can benefit your small business by providing tax incentives while ensuring employees’ well-being.
The Rise of Health Sharing Programs
Health sharing programs have gained popularity in recent years as individuals in relatively good health with few ongoing health complications feel it unfair to pay high monthly premiums for health insurance they are not using. These sharing programs operate on a cooperative model, where members pool their resources to cover each other’s medical expenses. Unlike insurance, health sharing programs are not regulated by the Affordable Care Act (ACA), which can lead to significant cost savings for both employees and employers. And though it is not insurance, it does meet the federal mandates for healthcare coverage.
Tax Benefits for Small Businesses
Small businesses that choose to participate in health sharing programs can enjoy several tax benefits. Here are some key advantages:
- Tax Deductibility: Contributions made by small businesses to health sharing programs are typically tax-deductible as a business expense. This can lead to a reduction in the company’s taxable income, resulting in lower tax liability.
- Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs): Small businesses can set up QSEHRAs, which allow them to reimburse employees for their medical expenses, including health sharing program contributions. These reimbursements are tax-free for employees and are also tax-deductible for the business.
- Increased Employee Retention: Offering company sponsored health care programs attractive potential employees and help retain current ones. A healthier, more satisfied workforce can lead to increased productivity and reduced turnover.
Like these ideas? Impact Health Sharing is the resource for your small business healthcare needs. You can consult Ryan and Megan with The System Healthcare for the solution, and you can consult your CPA as to how to categorize this valuable write-off!
Considerations for Small Businesses
While health sharing programs can offer tax advantages, small businesses should be aware of a few considerations:
Limited Coverage: Health sharing programs often have specific guidelines for what is eligible for sharing, which may limit some medical expenses due to preexisting conditions, tobacco use, and motorcycle riding. Despite limitations outlined in their guidelines, the flexibility and lower costs of Impact Health plans outshine those of traditional healthcare. Small businesses can speak with Megan & Ryan who are experts to receive a quote and more information about the plan.
- Qualification Criteria: Small businesses should consult with a tax professional to determine how to categorize this business expense as a write-off.
- ACA Compliance: Companies with less than 49 employees DO NOT have to provide healthcare to their employees or their dependents. However, business owners (with 25-49 employees) who choose to be competitive and offer value to their employees face the choice of working with “consortiums” to strike a balance between off-setting affordability as a larger group funded plan. As licensed healthcare brokers, Ryan & Megan can assist with these too. Our solutions for small businesses under 49 employees can see even higher savings to their bottom-line while being fair and equitable, which is a major concern for businesses who are protecting themselves legally.
Health sharing programs provide a viable and cost-effective alternative for small businesses seeking to provide healthcare benefits to their employees while enjoying tax advantages. Furthermore, the advantages don’t stop there! By participating in the health sharing offered by this not-for-profit group, your business can benefit from less employee turnover, higher productivity and efficiency, as well as attracting new, high-quality employees. All this due to the advantages offered by Impact Health Sharing, such as preventative care, maternity, accident, and illness care, industry-leading prescription drug pricing, telemedicine, as well as cancer and mental health services! By exploring this option with Impact Health Sharing, small businesses can not only save money but also contribute to the well-being of their personnel. In doing so, they can foster a more satisfied workforce that will help their business thrive.
Ryan & Megan Williams have been helping small businesses save money for over 20 years! They are focused on helping businesses and families find affordable healthcare solutions, and as top producers and nationally licensed healthcare brokers they are uniquely situated to assist all businesses, big or small with all forms of health care options ranging from traditional to alternative ones like Impact Health Sharing.
“We love sharing our solutions, giving back, and forming life-long value.” – Ryan & Megan Williams
The System Healthcare can help you take the steps to see if health sharing is right for your business here. https://www.thesysteminc.com/zoomhealthcare