We are constantly talking to our customers, both individuals and companies, about the different ways in which they can tax relief. They are becoming more and more limited, so today we will talk about one of the ways to pay less tax: the health insurance for workers in companies.
How does it benefit the company to take out this insurance?
Recently, we have seen a steady increase in the number of people with health insurance in Spain, reaching more than 20%. These are historic figures that are being surpassed year after year, partly due to the lengthening of public health waiting lists.
There is increasing talk about the social benefits that companies can offer their employees. Taking out health insurance is a highly recommendable option in this respect, because:
- Reduce absenteeismThe company's return on investment in this insurance has been proven: by having quicker access to diagnostic tools and surgeries, the company has a proven return on investment in this insurance.
- Increases loyalty and employee motivation
- Improving the company's image (and thus its Corporate Social Responsibility).
- The premium is 100% deductible in corporate income tax
Insurance premium payment options
When a company decides to subscribe/offer health insurance to its employees, there are several payment methods:
- Company pays 100% of the insurance cost
- The company pays a percentage and the employee pays another
- The employee pays for it in full (hired by whomever he/she wants, of course).
Let's look at how these options differ:
- When the company bears the entire premium
As mentioned above, anything paid by the company is deductible for corporate income tax purposes, 25%, so a 25% could be said to be assumed by the Treasury.
Up to 500 euros per insured person per year, is not computed in personal income tax for the worker, It is therefore seen as an alternative to a pay rise that also brings tax savings for the employee, which he or she greatly appreciates.
- When each party bears a percentage or when the employee pays a percentage in full
In this case, if the employee's share is deducted from his or her salary, a tax benefit is also obtained, as it reduces his or her taxable income (as it is in the form of an employee's tax Flexible Remuneration)
The share borne by the company is treated in the same way as in the previous point.
The cost of health insurance when taken out by the company
Of course, we have not mentioned that the prices that the company gets for insuring its entire workforce are much better than the prices for health insurance that could be taken out individually. It is possible to discounts up to 40% If you want to check how much a health insurance for the employees of your company would cost, contact us without obligation. Be one of the many companies with health insurance for their employees, and start enjoying all these advantages.
