As a business owner, you have a lot of responsibilities when it comes to taking care of your employees. If you offer good benefits, such as healthcare, you’ll be more likely to hire and maintain the best employees.
Here are a few reasons why your business should offer HSA-compatible health plans.
HSA Money Rolls Over
One of the reasons your business should offer an HSA-compatible health plan is that HSA money rolls over. An HSA, or Health Savings Account, is set up to help employees pay for healthcare costs. The money that your employees contribute to their HSA account will roll over and continue to benefit them in the coming years.
Additionally, your employees can contribute, save, and withdraw money tax-free, saving them from unnecessary deductions. As long as your employees are rolling over or withdrawing funds to pay for qualified healthcare expenses, they won’t have to pay any additional taxes on them.
Decrease Healthcare Burden
Another reason your business should offer an HSA-compatible health plan is that it can help decrease the healthcare burden placed on your employees. Healthcare is increasingly expensive, particularly if your employees have families they’re trying to provide for and cover. If your employees feel that you’re not offering them the healthcare benefits they deserve and need, they’ll be incentivized to look for a different job.
Providing an HSA-compatible health plan can decrease the burden and expense of healthcare, helping your employees remain loyal to your business. It can help them cover many needed costs, including copayments, deductibles, and more. HSAs can also cover dental costs like braces.
Reduce Taxable Income
Finally, providing an HSA-compatible health plan for your business can help to reduce taxable income. In addition to being able to contribute to or withdraw from an HSA without additional taxation, your employees will be able to reduce their taxable income when they contribute to an HSA account. This means that the amount of taxes they’ll have to pay on their income could be reduced. This could also benefit you, as their employer, as you could receive some tax deductions and/or benefits for using an HSA-compatible health plan at your business.
So, if you’re trying to decide which benefits to offer your employees, remember the advantages of offering them an HSA-compatible health plan. Doing so can help them to roll over HSA funds, decrease their healthcare burden, and reduce their taxable income. This can keep your employees happier, healthier, and more fulfilled at your business.
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