Offering Health Insurance to Your First Employee: How Utah Avenue Insurance Can Help

Taking the leap into self-employment is an exciting milestone, and hiring your first employee is a significant step in growing your business. One crucial aspect to consider is offering health insurance to your team. While securing health insurance for yourself as a self-employed individual is challenging enough, providing coverage for your employees can be even more complex. That's where Utah Avenue Insurance comes in.

Why Offer Health Insurance?

Offering health insurance can help attract and retain top talent, which is essential for the success of your growing business. The benefits you offer is usually as high of a priority as income for future employees. It also demonstrates that you value your employees' well-being and are committed to providing them with a comprehensive benefits package. But often times, offering a group health plan to only 1 or 2 employees is not cost effective. A local agent at Utah Avenue can compare options including group health plans and Marketplace insurance.

Navigating the Health Insurance Marketplace

For self-employed individuals, the Health Insurance Marketplace is a vital resource for finding health insurance. It's just as great of an option when it comes to offering coverage to your employees.

The Marketplace offers various plans, and if your employees qualify, they can receive subsidies to make their premiums more affordable. However, as an employer, you cannot directly deduct health insurance premiums from the Marketplace. For most families, the premiums and benefits make having a Marketplace plan as good or even better than group health insurance options. Over 50% of clients at Utah Avenue Insurance pay less than $50/mo for their health insurance premium.

Adjusted Gross Income (AGI) and Health Insurance

Your AGI is a crucial factor in determining eligibility for subsidies in the Marketplace. The AGI includes your total income minus specific deductions like:

Home office deductions
Vehicle expenses
Supplies and equipment
Depreciation

While these deductions can help reduce your own AGI, they don’t apply to the health insurance premiums you offer your employees unless they are paid as a 1099 employee and can deduct those expenses.

Offering Additional Benefits

Though you can’t deduct Marketplace premiums, you can still offer additional benefits to your employees that are deductible. For instance:

Dental and Vision Insurance: Offering dental and vision coverage as part of your benefits package can be an attractive perk for employees and is deductible for your business.
Accidental and Critical Illness Insuarnce: Offering these benefits ensures that your employees medical bills are taken care of in the event of a major accident or diagnosis like cancer.

Let Utah Avenue Insurance Be Your Resource

Navigating health insurance for your first employee can be overwhelming, but Utah Avenue Insurance is here to help. Our experienced agents can guide you through the process of selecting the right plans, not just for yourself but for your employees as well. We’ll assist you in understanding the options available, estimating costs, and ensuring that you get the best coverage for your budget.

The Benefits of Working with Us

Expert Guidance: We’ll help you understand the nuances of health insurance for both yourself and your employees.
Flexible Options: We can assist in providing a range of benefits, including dental and vision coverage.
Financial Planning: We’ll ensure you make the most of your benefits while managing costs effectively.

Your journey into self-employment is filled with opportunities and challenges. Let Utah Avenue Insurance make health insurance one less thing you have to worry about. Contact us today to learn more about how we can help you and your team get the coverage you need.