Very often the question before you as small business entrepreneur is that whether there are laws regulating group health insurance of your employees. You might also like to know whether offering such group health insurance to your employees is mandatory on your part.

Till date there are neither any federal nor any state laws making health insurance offer to employees mandatory for the employer. In fact it is not even legally mandatory to offer health care benefits to your employees. At the same time USA is one of those countries where moral and ethical responsibilities are given priority over any legal formalities.

As an entrepreneur in welfare state you have the veritable responsibility to look after the well being of your employees both morally and ethically. Good news is that most of the employers are quite conscious about such responsibilities. You will certainly not like to have your name struck off the list of such ethical employers.

In addition to the ethical and moral sides, there is also your business prospective. You can easily attract efficient and expert hands if you provide good health care benefits. In a labor market like USA which is extremely tight, it is one of the best methods to attract good employees.

Another consideration for you is that the use of either the section 105 or the section 125 plan could give you tax exemptions for your business. You get double benefits earning good will of your employees and tax benefits for your enterprise.