Though insurance options are not compulsory for employers. Still, it is a better practice to offer insurance to the employees. There are numerous kinds of insurances you can offer to them. Some of the popular ones include:
- Health Insurance
- Life Insurance
- Burial Insurance, and so on.
Though health and life insurance are usually given in maximum corporate companies, hardly few companies go for burial insurance for seniors in their office. But in today’s time, this kind of insurance has also become necessary for the families. And hence, companies should start reconsidering their policies and include these insurance kinds in their salary offers.
But why should they do that?
Since not every company offers such insurances, and considering the fact that these insurance are in a way mandatory for every person, people get automatically attracted to such companies. Keeping aside the job profile and their choice of companies, if they can get the insurance options as a part of the plan, not only would the employees be attracted, they would also prefer staying with the company for as long as they can.
In this way, you can attract and retain a lot of your qualified employees, thereby increasing the performance and reputation of your company to great heights.
Gain tax benefits
Not only are the employees benefited with these insurance covers, you as a company also benefit from this. When you offer insurance to the employees and increase their compensation package, you also allow yourself tax deduction for this contribution. Self employed or not, your insurance covers are allowed under income tax deduction.
Hence, the self employed can get 100% deduction of their insurance covers. While the employers can deduct 100% of the cover they give to their employees from the tax.
This way, a lot of tax saving happens, while at the same time benefiting employees too.
Moreover, if you are a small company with less than 25 employees, you can also take tax credit to provide health insurance cover to your employees.