Your company must meet certain basic conditions in order to qualify for small group health insurance.
At least one W-2 employee must enroll in the group coverage. This employee must work at least 30 hours per week to be considered a qualified applicant.
The W-2 employee that enrolls cannot be an owner or the owner’s spouse.
- You will need to offer the group insurance to all qualified employees (30+ hours per week).
As a W-2 employee, payroll taxes are automatically deducted from your employees' paychecks and then paid to the government. If your employee is an independent contractor and does not automatically get taxes withheld, then they are a considered a 1099 employee. While you may be able to have 1099 employees on your plan, at least one W-2 employee will need to participate in order for your group to qualify.
The insurance company will require a copy of your company's most recent quarterly wage report in order to verify eligibility. If any of your employees were just hired and do not appear on the wage report, you will need to provide a minimum of at least two weeks of payroll journals showing that the employee has been receiving full-time wages. Owners who are not W-2 employees will need to show ownership documentation.
Our enrollment application will guide you through this process by asking specific questions and advise you of what documents are needed in order to successfully submit your application.
Note: You are allowed to sign up for small group health insurance at any point in the year so if your group is not currently eligible, you can always apply for coverage later once you meet eligibility requirements.
If you believe your company is eligible and you'd like to shop around for a small group health insurance plan, you can get a quote on our website at: www.simplyinsured.com.