Small Business Health Insurance in Utah
Promoting healthy living for organizations of all sizes
Did you know that nearly 47% of the U.S. private workforce is made up of small business employees, equaling about 60 million people? Employees everywhere deserve health benefits.; however, many small business owners don’t provide any kind of health insurance.
The Affordable Care Act (ACA) determines that employers with over 50 full-time employees must provide health insurance while those with under 50 employees do not. Especially because small businesses often employ part-time workers as well, small business owners don’t always meet the ACA requirements and are under no legal obligation, they don’t consider health insurance as a benefit for their employees or don’t know how to find adequate coverage.
The good news is that there are still many small business owners that want to provide health insurance—but they often don’t know what kind of provider options they have. That’s why Blackrock Benefits specializes in helping small Utah business owners discover innovative and useful ways to provide health insurance to their employees.
Benefits of Offering Health Insurance as a Small Business
While it does take more financial backing, there are also business-related benefits that come with providing employers with health insurance.
Stay Competitive
59% of small-business owners feel they cannot compete with large-scale businesses that offer better benefits. However, small businesses can still offer great health benefits, which makes them more appealing compared to their competitors. Solid benefits should attract and retain better talent!
Create a Resilient Workforce
The healthier your employees are, the better they perform and the happier they are. With access to doctors, testing, and checkups, even while paying health premiums, people will manage their health and stress better and likely boost their performance at work.
Enjoy Tax Benefits
Providing your employees with health insurance is more than philanthropic; there are also tax credits you may qualify for that will essentially supplement a lot of the cash flow that is going towards health benefits.
To qualify for this tax credit, a business must meet the following criteria:
- Have 25 employees or less
- The average annual wage per worker does not exceed $50,000
- The employer must contribute 50% toward employee coverage
This can make the difference between being able to afford healthcare for your employees and not, and even smaller businesses may qualify for a 100% reimbursement.
Utah Small Business Health Insurance Requirements
If you’re a small business owner in Utah, you might wonder what rules apply if you do offer health insurance as a benefit. The good news? Utah’s requirements are straightforward, and most align closely with federal standards under the Affordable Care Act (ACA).
Under the ACA, businesses with fewer than 50 full-time equivalent (FTE) employees are not required to provide health insurance. Once you reach the 50-employee threshold, however, you’re considered an Applicable Large Employer (ALE) and must offer affordable, minimum-value coverage to all full-time employees (those working 30+ hours per week) or face potential IRS penalties.
Even if you’re below that limit, offering coverage can make financial sense. Great benefits like health insurance can help your company stand out from the competitive Utah business landscape. It can also help boost your employees’ wellbeing and encourage them to stay for years to come.
Utah does not have additional state mandates requiring small businesses to offer coverage. However, if you do provide a group plan, it must meet Utah’s insurance standards overseen by the Utah Insurance Department. These include required coverage for certain conditions and treatments such as:
- Diabetes care and supplies
- Autism spectrum disorder therapy
- Maternity care and newborn services
- Mental health and substance use treatment
Utah also has a “mini-COBRA” continuation coverage law. It applies to businesses with fewer than 20 employees, allowing eligible employees to keep their group health coverage for up to 12 months after leaving the company, provided they pay the full premium.
Tax Credits and Savings for Utah Employers
Offering health insurance doesn’t just benefit your employees — it can also help your business. If you have a smaller team, you may qualify for the federal Small Business Health Care Tax Credit through the Small Business Health Options Program (SHOP). This credit is designed for companies that:
- Have fewer than 25 full-time equivalent employees
- Pay average wages below $63,000 per year (subject to annual adjustment)
- Cover at least 50% of employee-only health insurance premiums
- Purchase coverage through a SHOP-certified plan
Qualifying employers can receive a tax credit worth up to 50% of their premium contributions (35% for tax-exempt organizations). You can claim it for two consecutive tax years, which can dramatically lower your overall costs in those early years of offering benefits.
Even if you don’t qualify for the tax credit, your business can still save. Employer-paid health insurance premiums are generally 100% tax-deductible as a business expense under federal law. That means your premium payments reduce your taxable income — effectively lowering your total tax bill.
Utah small businesses can also take advantage of tax-advantaged health accounts like Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs). These accounts let employees set aside pre-tax dollars for medical expenses, while employers enjoy payroll tax savings on those contributions. It’s a win for both sides — employees save more, and your business pays less in employment taxes.
Work with a local benefits advisor and insurance broker familiar with Utah’s small business landscape to make sure you’re capturing every available credit and deduction.
We’re Simplifying Health Insurance for Small Businesses
Employers of small businesses need to understand the health insurance options that they have. We strive to empower small businesses while getting them the financial and medical support they need to live happy, healthy, and satisfying lives.
Educate Small Business Owners
Employers don’t have to try and compete with larger companies to offer decent health benefits. In Utah, there are several types of health benefit plans to consider, including:
- PPO Health Insurance Plans
- HMO Health Insurance Plans
- HSA-Qualified Health Insurance Plans
- Indemnity Health Insurance Plans
Inform Using Data and Research
We use data and experience to find an insurance provider that fits your business size, industry, the needs of your employees, etc. Instead of trying to weed down the best provider from 100s of random online options, we help employers make an informed decision based on research and evidence.
Offer Personalized Help
Small business owners must monitor their overhead carefully, which we understand is a top priority. We help employers find health insurance solutions for their company specifically so that you only pay for what you actually need—no extra fluff.
FAQ
How much does small business health insurance in Utah cost?
Most business owners should plan on paying $200 – $250 per employee per month for health insurance coverage. This amount will vary based on the provider, the age and gender of your employee, and possibly other factors.
How many employees do you need to qualify for group health insurance in Utah?
Small business health insurance in Utah, for group health insurance, usually requires at least two employees, which can include the owner. There are usually a variety of plans that can serve even the smallest companies.
Ready For Better Health Benefits?
If you are a small business owner who needs help finding the right health insurance provider for your employees, look no further; our experts at Blackrock Benefits are eager to assist you with personalized advice while discovering the perfect cost-effective group insurance plan. Contact us today to get started!