Group Health Plans

Group Health Plans are health plan offered by an employer or employee organization that provides health coverage to employees and their families. Group health insurance plans are designed to be more cost-effective for businesses. Employee premiums are typically less expensive than those for an individual health plan. Premiums are paid with pretax dollars, which help employees pay less in annual taxes. Employers pay lower payroll taxes and can deduct their annual contributions when calculating income taxes.

The Affordable Care Act (ACA) offers small businesses tax credits to help offset the costs of health insurance coverage. Credits vary, but you could receive up to 50 percent off your contributions toward employee premiums if you pay at least half their health care premiums and have fewer than 25 full-time employees who earn less than $50,000 per year, on average.