What You Need to Know About Health Insurance for Corporations: Subsidies, Tax Deductions, and More 

If you are a business owner with less than 50 employees, you may be wondering if you are required to offer health insurance to your employees. The answer is yes! All businesses with 25 or more employees are required to offer health insurance. If you are a small business, there are some subsidies and tax deductions available that can help.

Let’s review the different types of health insurance available for corporations and LLCs, as well as the benefits and tax deductions associated with each type. 

Taxes on the Mind 

Corporations and LLCs with less than 50 employees qualify for large tax deductions. At minimum, you must contribute 50% of the employee’s monthly premiums. Know that this contribution is 100% tax-deductible, which can help to offset the cost of health insurance for your employees.

If you decide to cover more, you are free to do so. However, 50% is the current mandatory amount. 

Types of Insurance for Your Employees 

You have complete control over what to choose for your employees. Some employers opt for vision, health, dental, or general medical insurance. Others choose to provide a combination of these services. It is important to shop around and compare prices and coverage before making a decision. A great insurance agency can help you find the right plans, set them up, and get your employees the most coverage in accordance with your budget.

Covered California 

If you are based in California, you will want to be sure to set up your health insurance properly in order to take advantage of all the savings and programs available through Covered California as well.