Options for Insuring Farm Employees
Insurance benefits can be a strong employee retention tool, but paying for it is a challenge.
Lynn Woolf
Published: May 14, 2010
Experts say insurance benefits can be a strong employee recruitment or retention tool. Paying for it is another challenge.
Consider these options:
- Offer a base plan you can afford and let the employee pay for additional coverage for themselves or their family.
- Set aside a certain amount for benefits and let the employee choose whether to apply it to insurance.
- Offer a high-deductible plan, which may mean lower premiums. Then, supplement it with options for setting aside pre-tax dollars, such as a health reimbursement account, a flexible spending arrangement or an Archer medical savings account.
Be aware though that the employer bears the responsibility for administration.
Check with your state insurance commissioner regarding regulations. And, check with your accountant regarding tax credits. The new Patient Protection and Affordable Care Act provides small employers (no more than 25 employees and average annual wages of les than $50,000) a tax credit for providing employee health insurance.
The legislation may also provide new options to insure employees. In 2014, Health Insurance Exchanges will be available for the self-employed, the uninsured as well as small businesses and their employees. These Exchanges will offer lower rates, stable pricing and choice of plans. The new legislation does have a requirement for an employer to provide coverage. However, it exempts those with 50 or fewer employees.
Lynn Woolf writes and farms in Milton, Kansas.
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