I have a small company in Arkansas (less than 10 empoloyees)and would like to offer health insurance as a benefit. Quotes are prohibitive at this time. Question, can I have agreements with the employees that state I will cover the cost of their individual policies up to a certain amount, say $300 per month.
Answer by Moderator - Wednesday, November 18, 2009 @ 3:05 pm No CommentsNo comments yet. Leave a comment |
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Yes, but for tax purposes this would likely just be treated like a payroll bonus or a salary increase. The insurance contract would be between the insurance company and each individual employee and premium payment would have to be made by that employee, with you providing that employee with reimbursement. The exception to this would be working with an insurance company that accepts a “list bill” payment option. We are not sure if this is an option through any insurance carriers in your state. You would be best served by contacting a health insurance broker in your area that would be more familiar with the specific options in Arkansas.
