Benefits for part-time employees – What is it?
Health insurance and other benefits are an important part of the compensation package that most employers offer their workers. In some cases, insurance is required by law. However, many organizations employ at least some part-time groups. Even if you do not have to offer these employees the same benefits as full-time employees, you may want to consider doing so anyway.
According to the current rules, which are mostly regulated by the Affordable Care Act, employers with at least 50 full-time employees must offer health insurance to all workers who work at least 30 hours per week (do them full time). Anyone who works less than this is considered part-time and therefore does not need to be offered health insurance.
You may be able to provide them with health insurance. However, ACA requires that part-time employees be offered health insurance through a consistent written policy. In other words, you can not pick and choose who gets health insurance, even if you can set a minimum number of hours to get it.
Reasons Why You Should Consider Offering Benefits to Part-Time Employees
Many employers are reluctant to offer insurance or other benefits to part-time employees and consider it an unnecessary expense. However, there are some good reasons to consider it:
- attract more talent: People want to find employment that provides health insurance. Other benefits such as pension plans, paid leave and health benefits are also attractive. Simply put, by offering benefits, you can attract more interest and find skilled part-time workers. For people looking for part-time work, benefits can be a serious deciding factor.
- Reduce turnover: Similarly, your team members are less likely to leave their jobs if they receive benefits, especially health insurance. This can have a major impact on sales. Hiring and educating new people is expensive. Keeping experienced staff is usually financially advantageous.
- Deduction premiums: Many health insurance costs are deductible. So you can extend your compensation packages while deducting premiums and helping to recoup some of the costs.
- Let them pay before tax: With a little paperwork, you can let your employees pay their share of the premiums with money before tax. This means they can keep more money in their pockets. Again, this is an attractive option for your part-time workers.
- Maintain a healthy workforce: Happy and healthy people are more productive and less likely to need sick leave. This means a greater return on your employees.
- Improving morale: There is a lot to be said for treating your team members well. Offering benefits can be part of building a positive team culture.
In other words, there are significant economic and productive benefits to offering insurance and other benefits to part-time employees. If you take a holistic view of the decision, it can be financially advantageous to offer benefits.
Get group health insurance
Whether you choose to extend benefits to part-time employees or not, it pays to find the right insurance provider. Sackett & Associates Insurance Services is a group insurance broker in Santa Rosa that can help you find the right coverage for your business. Contact us today to learn more and get started.