Aside from the financial incentive, how can this initiative help employers?
Creating a work environment that supports healthy behaviors will bring an added benefit to everyone in the company. Wellness initiatives show management support for employees and enhance work culture. An effective wellness plan requires a strong program design, a supportive executive team and an encouraging management culture that supports employee participation.
Because employees are a company’s most valuable asset, investing in their well being can improve employee morale, help prevent turnover and potentially reduce long-term health care costs. A program’s success lies not only with the individual but also requires the support of the corporate leadership.
With the increasing cost of insurance and health care, wellness initiatives are some of the best means of reducing health care risk factors and establishing options for preventive health care. Wellness programs potentially reduce insurance costs and help to improve your employees’ overall well being, both now and in the long run.
What does an employer have to do to qualify for the credit?
The Indiana State Department of Health Advisory Board determines if a company’s wellness program can be qualified for the Small Employer Wellness Program Tax Credit. Once the wellness program is approved, the small employer will receive a certificate via the U.S. Postal Service. This certificate must be submitted to an Indiana tax professional with the employer’s tax documents. Only an Indiana tax professional can determine if the small business is eligible to receive the tax credit and file for it.
To qualify for the tax credit, you must meet the requirements defined by Indiana Code 6-3.1-31.2-3, found at www.in.gov/isdh/19950.htm. This includes having between two and 100 full-time employees, with a full-time employee defined as one who is employed at least 30 hours each week. A certified wellness program must be designed to improve the overall health of a company’s employees and include an employee-appropriate weight loss program, a smoking cessation program and the pursuit of preventive health care services
What elements must be included in a qualified wellness plan?
Each of the three above mentioned elements must include a detailed description of each area and include assessments, educational materials, a rewards program and a measurement tool. Assessments are evaluation tools used to determine the health status of the employer’s work force, while educational materials provide information to employees about each component of the wellness program and may include brochures, articles, newsletters and a website. Rewards programs provide incentives for motivating employees to participate in the various aspects of the wellness program, and measurement tools evaluate the success and validity of the wellness programs implemented.
Does every employee have to participate in order for a business to earn the credit?
No. However, programs with high participation levels have the best opportunity for achieving a positive return on investment, improved employee outcomes, reduced absenteeism and a work force that is present on the job.
Sally Stephens is president of Spectrum Health Systems. Reach her at (317) 573-7600 or [email protected].
