Why Sub-contractors
Subcontractors offer specialized skills to a primary contractor for a specific project or on an ongoing basis.
What industries use subcontractors?
Many varied industries use subcontractors. Some of them are: construction, manufacturing, insurance, health care, graphic design, marketing, advertising, realtors, transport, logistics, event planning, and religious and non-profit industries that may use subcontractors.
There are advantages for both the principal contractor and the subcontractor to consider using group benefits.
Advantages
Contractors may be liable for how their subcontractors treat their employees. Forward-thinking contractors may make it a condition of the contract that the subcontractors have some form of benefit. This will protect their subcontractors’ employees the same way they would expect them to have certain certificates and safety standards.
Principal contractors could use their influence and size to allow sub-contractors to access benefits that would not otherwise be available to them due to their smaller size.
A subcontractor may face unique challenges when it comes to securing comprehensive health and dental coverage. Joining a group with a principal contractor’s plan can provide numerous advantages that individual or smaller plans simply can’t match. Below, we will explore the top reasons why subcontractors should consider joining a group health and dental plan if it’s offered by the principal contractor.
Why Group the Benefits
- Higher Limits: Individual paramedical practitioners, for example, massage therapists, physiotherapists, chiropractors, and others, can be covered up to $1000 each or more per year. Vision care and many other benefits come standard in most group plans. With a wider group plan, sub-contractors and their employees’ families can have the comprehensive coverage they need to stay healthy and productive. The reputation of a principal contractor can be severely impacted by the way sub-contractors treat their employees. One example is when delivery subcontractor drivers had to pee in bottles while driving to try to meet punishing deadlines.
- Cost Savings: One of the most significant benefits of group plans is the potential for substantial cost savings. By pooling resources with other subcontractors, members can access lower premiums and better coverage than they would on their own. This is especially important for those industries where the cost of individual plans can be prohibitively expensive. Larger groups simply spread the risk based on economies of scale.
- Simplified Administration: Managing individual health and dental plans can be a time-consuming and complex process. By joining a group plan, the administrative tasks associated with coverage are streamlined. The plan administrator will handle enrollment, premium collection, and claim processing, allowing subcontractors to focus on what matters most: providing exceptional skills to the principal and his clients.
- Attracting and Retaining Talent: Despite all the clamour about AI replacing skilled workers, attracting and retaining skilled workers will continue to be a major constraint for business growth and efficiency. In today’s competitive market, offering a comprehensive benefits package can be a powerful tool for attracting and retaining top talent. By creating a group health and dental plan, the principal contractor can demonstrate a commitment to the well-being of the subcontractors, making them a more attractive organization to partner with. This can help you build a strong, loyal team of skilled professionals who are dedicated and motivated. This will take any organization to the cutting edge of management best practices.
- Tax Advantages: Joining a group health and dental plan may offer tax advantages. Premiums paid by the organization may be tax-deductible as a business expense. Additionally, subcontractors may be able to pay their portion of the premiums in pre-tax dollars, reducing their overall taxable income. This may also be a tax-deductible expense. Consult with a qualified independent group plan advisor in collaboration with accountants to determine how a group plan could impact your tax situation.
- Portability: Subcontractors can still take the plan for their smaller group, and if they do it in a timely manner, they can do it without the need for medical underwriting.
- Pre-existing Conditions Covered: All members are accepted even if they have existing medical illnesses that would not be covered on an individual plan, for example, diabetes, HIV, or a history of cancer. There are no questions about past drug use or criminal history.
- Tax-Free Benefits: Most benefits received were tax-free. For every $5, employees can receive up to $100 or more in benefits.
- Counter-Inflation: As the benefits far exceed the cost of the plan, this is an effective way of helping sub-contractors and their teams deal with the effects of inflation.
If you’re a principal or a subcontractor, now is the time to explore the benefits of creating a group health and dental plan that will protect all people on your team. Let us help you take the first step towards securing comprehensive coverage that meets the unique needs of your team.
At SveaBen Financial, we specialize in helping professionals navigate the complex world of group benefits.
Don’t let the challenges of individual health and dental plans hold your organization back.
Embrace the power of group coverage and start enjoying the cost savings, enhanced benefits, and simplified administration that come with a group health and dental plan provided by SveaBen Financial. (To learn more about group plans and to read our testimonials, please visit our website, SveaBen.ca.)
Contact Vusani today at (587) 577-0436 or SveaBen1@gmail.com to schedule a brief meeting with Vusani.
We would love to work with you and your team.
