Are Employers Required to Offer Health Insurance? 3 Things to Know

Brittany Champagne • Jun 01, 2020

In the U.S., many workers receive their health insurance through their work. Some people will even seek jobs that may pay less but offer benefits, but are employers required to offer health insurance by law? For small businesses, health insurance may be an expense they just can’t shoulder.

Are Employers Required to Offer Health Insurance? 3 Things to Know

The short answer is no. The longer answer is more complicated. Here are three things to know:

1. Laws Requiring Health Insurance

No law exists to require employers to cover their employees’ health insurance. However, larger companies may get penalized by the IRS under the Affordable Care Act. If your company has 50 or more full-time employees, you may pay up to $3,860 per year per employee. The 2017 Tax Cuts and Jobs Act may have eliminated penalties in 2020 for large employers who failed to offer group coverage.

2. Federal and Utah Laws

In federal or Utah law, nothing directly requires a company to offer health insurance. The laws directed towards health insurance focus mainly on what must be covered. Utah has strict mandates on what must be covered by group insurance. These standard benefits include things like ambulatory patient services, prescriptions, mental health services, and maternity and newborn care.

3. Benefits of Offering Health Insurance

For small and large businesses alike, offering health insurance has many benefits. Small businesses may qualify for a tax-credit if they offer health insurance. Big businesses can avoid any tax penalties by providing group coverage. For all companies, offering good health care coverage can bring in better employees and lower turnover rates. Health insurance can make your business a better competitor for great employees.

While there is no law that requires employers to have health insurance, offering health coverage to your employees may benefit your business. If you do offer health insurance, make sure it covers the federal and Utah standard benefits. Do you need help with other payroll and benefits questions for your business? Check out MyQualityPayroll to see our personalized services that take the hassle out of your success.

Payroll Workflow
04 Feb, 2024
Navigating the complexities of payroll processes can be daunting for small business owners, especially when striving to avoid common pitfalls that can lead to errors or inefficiencies. Whether you have a handful of employees or a larger team, having a frictionless payroll workflow can save you time, resources, and potential headaches.
Navigating Employee Classifications
04 Jan, 2024
Understanding the various categories of employees within an organization can often seem like navigating a labyrinth of complexity. These classifications, which encompass full-time, part-time, temporary, and independent contractors among others, each bear unique implications for both employee rights and employer obligations.
By quality-payroll 03 Dec, 2023
The business landscape is evolving rapidly, and IT companies are at the forefront of this change. To maintain a competitive edge, these companies are increasingly turning to outsourcing. This strategic... The post IT Companies’ Efficiency Boost: Outsourcing Preparation and Distribution Made Simple appeared first on Quality Payroll & Benefits.
By quality-payroll 17 Oct, 2023
In today’s fiercely competitive retail industry, nurturing employee well-being stands as a paramount objective. By partnering with a trusted outsourcing company for benefits administration, retail businesses can revolutionize their approach... The post Retail Companies Supporting Employee Well-being Through Outsourced Benefits Administration appeared first on Quality Payroll & Benefits.
By quality-payroll 03 Oct, 2023
In the dynamic realm of healthcare, ensuring an inclusive and understanding environment for every patient is a non-negotiable priority. To achieve this, healthcare providers need to continually enhance their comprehension... The post The Importance of Outsourcing Civil Rights and Diversity Training for Healthcare Providers appeared first on Quality Payroll & Benefits.
By quality-payroll 03 Aug, 2023
Human Resources (HR) departments play a critical role in managing employee records, payroll, and financial transactions. The administrative burden of bookkeeping and checking account reconciliation can be time-consuming and overwhelming... The post Simplify HR Responsibilities: How Outsourcing Bookkeeping and Checking Account Reconciliation Benefits Human Resources Departments appeared first on Quality Payroll & Benefits.
By quality-payroll 17 Jul, 2023
Launching a startup comes with a host of challenges and responsibilities, not least of which is managing employee benefits. As startups strive to attract top talent and compete with larger... The post Streamline Employee Management: The Advantages of Outsourced Benefits Administration for Startups appeared first on Quality Payroll & Benefits.
By quality-payroll 03 Jul, 2023
The business world has evolved remarkably in recent years, emphasizing the importance of a diverse and inclusive workforce. This transformation has resulted in many entrepreneurial individuals finding new opportunities and... The post Building a Diverse and Inclusive Workforce: How Outsourcing HR Benefits Entrepreneurial Individuals appeared first on Quality Payroll & Benefits.
By quality-payroll 17 Jun, 2023
Employee benefits are a crucial component of an organization’s compensation structure. They play a critical role in attracting, retaining, and motivating talent. However, managing these benefits – a process known... The post Understanding the Basics: How to Navigate Employee Benefits Administration appeared first on Quality Payroll & Benefits.
By quality-payroll 01 Jun, 2023
In a competitive job market, companies must go beyond just offering a competitive salary to attract and retain top talent. Employee benefits are a critical part of a company’s value... The post Enhancing Employee Retention through Effective Benefits Administration appeared first on Quality Payroll & Benefits.
More Posts
Share by: