Employer SHOP Plan Vs Individual

[roijjer]

I just opened a new restaurant and was looking at options for health insurance for my employees on healthcare.gov. I am not looking to make employer contributions to the premiums - I am still running at a loss while we build customer base as is. And I have less than 50 employees.

From what've gathered so far, if I sign up on healthcare.gov as an employer and offer coverage and make $0 employer contributions, my employees cannot get premium tax credits?
What this means is if I don't sign up and employees go sign up as individual, they may qualify for premium tax credits, hence lower premiums for them. BUT, if I sign up as an employer and make no employer contributions they will not qualify for tax credits and pay more for insurance?
Am I missing something?
This seems rather odd.

 

[rcduggan]

I just opened a new restaurant and was looking at options for health insurance for my employees on healthcare.gov. I am not looking to make employer contributions to the premiums - I am still running at a loss while we build customer base as is. And I have less than 50 employees.

From what've gathered so far, if I sign up on healthcare.gov as an employer and offer coverage and make $0 employer contributions, my employees cannot get premium tax credits?
What this means is if I don't sign up and employees go sign up as individual, they may qualify for premium tax credits, hence lower premiums for them. BUT, if I sign up as an employer and make no employer contributions they will not qualify for tax credits and pay more for insurance?
Am I missing something?
This seems rather odd.

i dont know your state or the laws there but i can speak directly for california. employers MUST make at least a 50% contribution towards employees premium, period. 80% of the cases i come across, both parties are in better shape than if employee's purchased medial on their own with post-tax dollars.
- depending on the size of your company and the average income of the employees, the company could qualify for up to 50% tax credit
- company's contribution is fully deductible
- employee's share in premium is paid with pre-tax dollars (section 125 POP plan) putting more money in their pocket at the end of the year

there are what i would call obvious waivers to make employees ineligible i.e. over 65, covered under parent's plan or spouses employer group and others to meet participation.

i'd highly suggest you actually speak with a competent agent that writes group to better assist.

by the way, the city i live has more than 50% of its businesses as restaurants and i know all about them. restaurants pay minimum wage quite often and employees rarely claim cash tips therefore it's more cost-effective for them to claim subsidies on their "income". most restaurants do not have any loyalty with their employees and this is due partly to no benefits. it's like this; let's say you're a steakhouse and give no benefits and i run a steakhouse and give benefits (everything else equal). where would you go as an employee for hire?