Tax credits for businesses

Small business owners that want to attract the best employees -- and then keep them healthy and happy all while earning a tax credit -- should consider healthcare insurance coverage from beWellnm.

Offering healthcare insurance can be a win for businesses and their employees, said Maureen Manring, director of communication and outreach for New Mexico Health Insurance Exchange.

Small businesses -- those with fewer than 50 full-time employees -- are not required to offer healthcare insurance.

“But a lot of them do it because they understand the importance of having insurance coverage,” Manring said. “It helps them retain their employees.”

According to Simone Zinn-Mahoney, a broker with Zinn & Mahoney Insurance Group in Albuquerque, this value-added benefit can help businesses remain relevant in their industry. Without it, companies could lose great, potential employees to their competition.

Plus, employees who know they have healthcare coverage for themselves and their families are likely to experience less stress and more likely to take care of their basic medical needs early, before they become problems that could keep them away from work, Manring said.

And for businesses that meet certain parameters, there’s a tax credit.

TAX CREDIT CONSIDERATIONS

The small business healthcare tax credit was designed to help small business owners support the costs associated with getting health insurance for their employees. Employers can get credit for up to 50% of the premiums they pay on behalf of their workers.

“It can be pretty significant,” Manring said.

While business owners can secure group insurance from any provider, they can only get this tax credit if they purchase health insurance for their employees through beWellnm for Small Business.

Businesses must also employ fewer than 25 full-time-equivalent employees and pay at least half of the premium costs to be eligible. In addition, employers can claim the tax credit for no more than two consecutive tax years.

“We’d love to see more small business owners taking advantage of that tax credit,” Manring said.

HOW TO LEARN MORE

For companies interested in healthcare insurance for their employees, Manring recommends first connecting with beWellnm.

“See how our platform coverage works. Get educated on the tax credits that are available.”

With beWellnm, businesses can determine their contribution by setting either a dollar amount or a percentage of the premium that they’re willing to pay. Then employees can select from 24 different plans provided by three insurance carriers.

“It gives the small business employee and the owner some choice,” Manring said.

On beWellnm.com, employers can get in touch with a certified broker or use the small business tax credit calculator to estimate their tax credit.

“The most important thing is to talk to somebody and start that conversation,” Manring said. “And see how this can fit within your business expenses and costs.”

BENEFITS OF A BROKER

Using a broker doesn’t cost employers anything and can save them a lot of work, Zinn-Mahoney said.

Brokers, who are paid by the insurance carriers, help employers decipher the vast amount of information available and make the best decision based on their budget and the needs of their workers. They even field questions from employees. And when it’s time to renew, brokers can make sure business owners are still getting the best bang for their buck.

“We become kind of their central contact,” Zinn-Mahoney said, ”their central connection to everything.”

TIPS FOR GROUP PLAN SUCCESS

Once a small business owner has settled on a group insurance plan, there’s several things they can do to increase its success, according to Zinn-Mahoney.

Make sure employees have access to information about the plan, the carrier network and who they can contact with questions. Keep communication open with the broker and use their assistance. Set up an automatic draft for premium payments, if possible. It’s a small, simple measure that really prevents problems down the line, Zinn-Mahoney said.

Finally, Manring recommends staying in tune with the latest insurance products that are being offered and revisiting coverage options every year.

PREMIUM DECREASES START SOON

While small businesses can enroll any time of the year, Manring noted that premiums costs are dropping starting in January. Small businesses will experience a 6.7% average premium decrease on beWellnm in 2021, according to New Mexico’s Office of the Superintendent of Insurance.

For employers considering purchasing healthcare insurance for their employees, Manring said, “It’s a good time to start looking at what this means for you as a business owner.”