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The easiest do it yourself Group Health Insurance Quote in California
Tax Benefits of Group Health Insurance Plans
If you are a small business owner, continuously looking for tax cuts and benefits should be on the top of your list. There are only so many deductions that you can take in each category, so it benefits you to know all of the categories and their allowed maximums. Code 162 from the IRS states that all deductions must qualify as either “ordinary” or “necessary.” Since healthcare is mandatory for all small business employing over two people, this is a necessary expense.
Many entrepreneurs are unaware that their group health plans can offer significant tax deductions on premiums and health savings accounts.
Premiums
By law in California, you are allowed to write off 100% of the premiums you are paying out for your group health plan. Even with a smaller staff, this can result in a significant tax deduction when it is time to put pen to paper. One important thing to make sure of is to have all documentation including receipts for payments as well as a copy of your current policy to prove that you are paying.
If you have any questions with tax deductions, make sure to take the information into your accountant so they can review them. Your accountant might know about some additional tax credits for paying employee’s premiums or other health care needs.
Health Savings Accounts
In California, health savings accounts are an amazing way for small businesses to save when tax time rolls around; since contributions are made pre-tax, they are not subject to any federal or state tax laws, providing added benefits for your employees as well.
In order to take advantage of this tax savings, you must have a HSA eligible plan, meaning that the deductible must be greater than $1,000 per year and may not offer a co-pay. Some tax benefits might be possible if you can show that you are actively contributing to employees’ health savings accounts.
Small business owners who keep up with the tax laws on California health insurance are the ones who save the most money when April 15 drifts into view. Although taxes are necessary, they don’t have to break the bank each year if you know what to look for. If you don’t feel like wading through pages of IRS data it might be a good idea to employee a tax professional, which can also help explain some of the benefits to your employees.
If you need information about California group health insurance you are in the right place. We will give you an instant no hassle Group Health Insurance Quote.
We offer Group Health Insurance Quotes for your Employees or your own Business. We can insure groups as small as only 2 people with only one employee, Partner, Corporate Officer or owner signing up. CaliforniaHealthyChoice.com has dealt with many groups of this size. All the groups we get issued are AB 1672 compliant and we only use top rated health insurance carriers like Anthem Blue Cross, Blue Shield of California, Health Net and Aetna. AB 1672 defines the size of an employer group in California as 2 or more individuals. This state law insures a California health insurance safeguard, allowing individuals with pre-existing medical conditions the ability to move from an old health insurance plan to a California group health insurance plan.
Are you ready to try something new?
CaliforniaHealthyChoice makes your employee benefit information accessible on your own computer. You simply enter your company name and a password from any internet accessible computer. All your group insurance and benefit information is right in front of you.
Eligible Employees that can be covered on a Group Health Insurance Plan
Full Time Employees
To qualify as a full time employee, the employee must be working at least 30 hours a week on a permanent basis. Also, the full time employee must be paid for that work by the employer and subject to tax withholding ( i.e. a W-2 form).
Part-Time Employees
A part time employee is any person working a permanent, part time position and must be paid a wage for that work by the employer and subject to tax withholding ( i.e. a W-2 form). Part time employees must work at least 20 hours per week but not more than 29 hours per week. An employer does not have to automatically include part time employees in the group health insurance policy but could be added later at the employer’s discretion. If the employer does offer to cover the part time employees, all part-time employees are eligible for coverage.
Corporate officers - Sole Proprietors - Partners
To be eligible for coverage on the group health insurance plan, corporate officers, sole proprietors, and partners must put in at least 20 hours of work per week.
Employees not entitled to participate in the California group health insurance plan include:
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Seasonal employees
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Temporary
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Substitute workers
- 1099 employees (some carriers do allow 1099’d employees under certain circumstances)
Eligible Family members - Dependents
Eligible dependents have one of the following associations with the eligible employee:
Call for more information or assistance. (800) 260-9051
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