Universal Benefit Plans Blog

In the effort to attract and retain top employees, employers need to be exceedingly creative, especially now that all employers must offer health plans that meet or exceed a minimum standard per PPACA regulations. In addition to our health plans, many other employer-provided benefits such as 401(k) plans have become very tightly regulated and our workforces have changed a great deal as well.

Long gone are the days when most employees stayed with the same company their entire careers. Our nation’s workforce is much more mobile so traditional standbys such as deferred compensation plans don’t make as much sense anymore.

So, how does the small business owner of today attract and retain key employees ages 40-60, many of whom bring immense value to their organization through their extensive professional experience? Enter employer-provided (or employer “sponsored”) long term care insurance (LTCI).

LTCI helps employers lower taxes:

By offering paid LTCI business owners can lower their taxes while providing an invaluable benefit (especially for Baby Boomer employees nearing retirement age) with affordable group rates.

Business owners can offer LTCI to key executives and other employees (without necessarily violating ERISA, labor laws, etc.) as well as to highly compensated employees and top performers. When a business owner pays LTCI premiums on behalf of non-shareholder employees he or she will receive a tax deduction for the full amount of premiums paid. S Corporation shareholder employees, partners in a partnership and LLC members who are taxed as a partnership are subject to age-based limits on the amount of employer-paid LTCI premium that’s tax deductible. Benefits paid to covered individuals are also generally tax-free.

Paid LTCI is a benefit your most valuable employees will appreciate now and even more so in the future, especially since an individual’s chance of needing home care, assisted living or nursing home care in a lifetime is 50%. Employers, are you looking for a way to save tax dollars, show key employees how much you appreciate them and help them protect their assets for years to come? If so, we’d love to engage you in a longer conversation. Call us now at 617-859-1777 or contact us via our website.