If you are providing health care coverage for your employees, your business cash subsidizes health care costs of your employees through your payroll.
Why is that?
It should never be like that. The insurance industry should be collecting their funds from their customer’s in other ways, not through your payroll services. The insurance industry already collects money for their products from consumer’s in various ways, that have nothing to do with payroll.
To me, it seems kind of stupid that you can only get health insurance plans by working for a company that can afford to pay for coverage that you want. The exorbitant health care costs need to leveraged differently throughout the total population. So technically, if you had an insurance plan id number for an employee, you could deduct for and pay for coverage based strictly on the employee’s contribution to their own plan, which has nothing to do with your business or the money you may be paying to subsidize health care.
On the other hand, if the insurance industry can figure out a way to help everyone in the U.S. get health care coverage, without taking funds from your business, as a benefit to the employee, then your business cash flow should go up. Simply because the cost of an individual’s health care would be pooled and leveraged differently than it is today.
Once you have more cash flow, the next thing you could possibly do for your employees and the job market is recalculate the rate of pay for every employee. Take an 8 hour day of wages and pay it in a 5 hour period. The employee now only works 5 hours with one break and an optional lunch (6 hours).
Now you will have hire someone else to cover the other 3-5 hour part of your businesses work day.
Where do you think that money should come from? How about a stimulus package for small business to hire employees, directly funded by the government, say for up to a year. Hopefully at the end of a year your business can afford to retain every employee, otherwise things just fold back to unemployment
and government subsidies to maintain that.
If you haven’t figured it out yet, some of the U.S. government’s policies on where stimulus funds should go all seem point to big business or large subcultures helping to build the new economy. Does it make sense that a bank should get stimulus funds to loan you money? I think it makes more sense for your business to get stimulus funds directly from the government to help with your payroll, so unemployment goes down rather quickly.
The way things are put together now is not working. All that needs to happen now is some of the pieces of puzzle need to be moved around a bit. As soon as that happens, everybody can have health care through central exchanges and the stimulus funds are going where they are most needed, to most of the people.
But then again, it is your payroll and this post is just my opinion.
It is a fact that inflation, as well as health care costs, have outpaced the wage base. The only way to turn that around is to move the pieces around and place money and time back where it belongs, in the hands of the people.
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