How Much Can I Ask Employees to Pay for Insurance?

On average, small businesses pay 75 percent to 100 percent of the total insurance cost for their employees and zero to 50 percent of the cost for an employee's dependents. You can ask employees to pay more than 25 percent, but think carefully before you do.

First, you need to make sure that you comply with regulations in your state. Each state has different laws limiting the amount an employee pays for an employer-provided insurance plan. In California, for example, employers are required to pay 50 percent of their employees' insurance rates for the lowest-cost plan. A local insurance provider or broker can help you with rates and regulations.

It's also important to offer employees a good, inexpensive health insurance plan that's an attractive benefit to their employment with your company.