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Taxes and Healthcare are hard to understand

 

It can be really hard to explain how your company sponsored Group Health (and dental, and vision and etc…….) affect your employee’s take home pay.

Several of the proposals currently being considered under the “Repeal and Replace” plans in congress look at the Employer Exclusion as a potential revenue center for funding future endeavors.  This exclusion was estimated to run right at $350 Billion in “lost revenue” to the US Government. The big question is how this would trickle down to the employees and American workforce.

Thankfully,  the fine folks over at NAHU.org have been so kind to tell the story with pictures and real-world examples.

Take a minute and download the infographic,  and consider if you would be one of the affected employers who chooses to discontinue benefits if the tax consequences changed.

Can you answer these questions?

 

Would you keep offering benefits?

Would you need to reduce salaries and hourly rates if your contribution to Health Plans were now taxed like payroll?

How many of your employees cover their families through your company? 

How many of them realize $3000 tax savings by doing so?

Would you still be a profitable company if the $5000 per employee you spend on Healthcare benefits now gets hit by your Effective Tax Rates?

Is your company running above or below the national 27% effective tax rate?

Bret Brummitt

Bret Brummitt

Senior Consultant

About the author: An avid learner and resourceful leader with a passion for problem solving, Bret is a calming force in the chaos and fast paced evolution of health insurance, employee benefits, and the growing burden of regulatory compliance. He helps people develop the confidence to see beyond the problem at hand and start to re-imagine their goals. Whether he’s helping a client or a colleague, Bret believes a successful interaction is one that allows us all to dream a little bigger when we’re done.

About AG Insurance: AG Insurance (www.agiainc.com) helps employers and their employees with solutions focused on positive organizational impact and improved employee experiences.