Why It Pays To Offer Benefits to Part Time Employees
Health insurance and other benefits form a key part of the compensation package most employers offer their workers. In some cases, providing insurance is required by law. However, many organizations employ at least some part-time team members. While you do not need to offer these employees the same benefits as full-time staff, you may want to consider doing so anyway.
The Rules Regarding Part-Time Employee Benefits
Under the current rules, governed mostly by the Affordable Care Act, employers with at least 50 full-time equivalent employees must offer health insurance to all workers who work at least 30 hours per week (making them full-time). Anyone who works less than this is considered part-time and thus does not need to be offered health insurance.
You can optionally provide them with health insurance. However, the ACA requires that part-time employees be offered health insurance through a consistent written policy. In other words, you can’t pick and choose who gets health insurance, although you can set a minimum number of hours to receive it.
Reasons Why You Should Consider Offering Benefits to Part-Timers
Many employers are hesitant to offer insurance or other benefits to part-time employees, considering doing so to be 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 retirement plans, paid time off and wellness stipends are also attractive. Simply put, by offering benefits, you can attract more interest and find capable part-time workers. For people looking for part-time work, benefits can be a serious deciding factor.Reduce Turnover:
In a similar vein, your team members are less likely to leave their positions if they are receiving benefits, especially health insurance. It can have a big impact on turnover. Hiring and training new people is expensive. Keeping experienced staff is usually financially advantageous. Deduct Premiums: Many health insurance expenses are tax-deductible. So, you can expand your compensation packages while deducting the premiums, helping to recoup some of the cost.Let Them Pay Pre-Tax: With a little paperwork, you can let your employees pay their part of the premiums with pre-tax money. This means that they can keep more money in their pockets. Again, this is an attractive option for your part-timers. Maintain a Healthy Workforce: Happy and healthy people are more productive and less likely to need sick leave. That translates to a greater return on investment from your employees.Improve Morale:
There is a lot to be said for treating your team members well. Offering benefits can be an element of building a positive team culture.
In other words, there are substantial financial and productivity advantages for offering insurance and other benefits to part-time employees. If you take a holistic view of the decision, it may 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 health 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.
