Health coverage is the largest optional cost in an employee benefits package: the 2026 KFF Employer Health Benefits Survey puts the average premium at $9,804 a year for single coverage and $28,303 for family coverage, with workers paying $1,672 and $7,471 of that. Across all benefits, private employers with 1 to 49 workers spent $9.76 per hour worked on benefits in June 2026, or 25.9% of total pay and benefits, according to the Bureau of Labor Statistics. The ACA requires health coverage only from employers with 50 or more full-time equivalent employees; for 2027, those that do not offer it can owe $3,780 per full-time employee, not counting the first 30.
- $9,804Single coverage premium, all firms
- $28,303Family coverage premium, all firms
- $9,593Single coverage premium, firms with 10 to 199 workers
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Prices at a glance
- Single coverage premium, all firms$9,804
- Family coverage premium, all firms$28,303
- Single coverage premium, firms with 10 to 199 workers$9,593
- Family coverage premium, firms with 10 to 199 workers$27,288
- ACA employer payment per full-time employee, 2027 (50+ FTE employers only)$3,780 to $5,670
Price table
| Item | Low | High | Typical | Notes |
|---|---|---|---|---|
| Single coverage premium, all firms[1] | $9,804 | Workers pay $1,672 (18%); the employer pays the rest | ||
| Family coverage premium, all firms[1] | $28,303 | Workers pay $7,471 (27%); the employer pays the rest | ||
| Single coverage premium, firms with 10 to 199 workers[1] | $9,593 | Average deductible at these firms: $2,624 | ||
| Family coverage premium, firms with 10 to 199 workers[1] | $27,288 | Workers at these firms pay $9,687 on average for family coverage | ||
| ACA employer payment per full-time employee, 2027 (50+ FTE employers only)[7][9] | $3,780 | $5,670 | $3,780 if coverage is not offered to 95% of full-time staff (first 30 excluded); $5,670 per employee who gets a Marketplace tax credit |
Prices are national ranges from the sources listed below. Your price depends on your provider, location and case; confirm the cost with your provider before treatment. How we get these prices
What an employee benefits package includes
An employee benefits package is everything an employer pays for on top of wages. The Bureau of Labor Statistics groups benefits into five types: paid leave, supplemental pay (such as overtime and bonuses), insurance, retirement and savings, and legally required benefits (Social Security, Medicare, federal and state unemployment insurance and workers’ compensation).[19]
Share of private industry workers with access to each benefit, March 2026:[4][5][6]
| Benefit | All private workers | Workers at firms with 1 to 49 employees |
|---|---|---|
| Paid sick leave | 81% | 75% |
| Paid holidays | 81% | 73% |
| Paid vacation | 80% | 71% |
| Retirement plan | 72% | 55% |
| Medical care | 71% | 55% |
| Life insurance | 59% | 40% |
| Paid family and medical leave | 49% | not reported |
| Dental care | 44% | not reported |
Workers at small firms have access to each of these benefits less often than the average private worker, most of all for retirement, medical care and life insurance.
What employee benefits cost per employee
In June 2026, private employers paid $46.89 per hour worked in total compensation: $32.82 in wages and $14.07 (30.0%) in benefits.[2] Small employers spend less. BLS figures by establishment size, per hour worked:[3]
| Cost per hour worked, June 2026 | All private employers | 1 to 49 workers |
|---|---|---|
| Total benefits | $14.07 (30.0%) | $9.76 (25.9%) |
| Legally required benefits | $3.40 | $2.97 |
| Insurance | $3.69 | $2.35 |
| Paid leave | $3.54 | $2.34 |
| Supplemental pay | $1.88 | $1.23 |
| Retirement and savings | $1.57 | $0.87 |
At firms with 1 to 49 workers, legally required benefits are the largest single benefit cost, at $2.97 an hour, and every employer pays them.[3][19]
Health insurance: the largest optional cost
The 2026 KFF Employer Health Benefits Survey has the latest national figures. Average annual premiums are $9,804 for single coverage and $28,303 for family coverage. Covered workers contribute 18% of the single premium ($1,672) and 27% of the family premium ($7,471).[1]
At firms with 10 to 199 workers, premiums are similar to larger firms ($9,593 single, $27,288 family), but workers pay more for family coverage ($9,687 vs $6,840) and face higher deductibles ($2,624 vs $1,772).[1] In 2026, 59% of firms with 10 to 24 workers, 66% with 25 to 49 workers and 87% with 50 to 199 workers offer health benefits.[1]
Which benefits are legally required, by employer size
| Employer size | What applies |
|---|---|
| Any employer with employees | Legally required benefits: Social Security, Medicare, unemployment insurance and workers’ compensation.[19] A written notice to every employee about Health Insurance Marketplace coverage options, whether or not you offer a plan.[17] |
| 1 to 50 employees | Eligible to buy group coverage through the SHOP Marketplace, any time of year.[13] |
| Fewer than 25 FTEs | May qualify for the small business health care tax credit if average wages are about $65,000 or less and the employer pays at least half of full-time workers’ premiums through SHOP.[11] |
| Fewer than 50 full-time employees | Can offer a QSEHRA instead of a group plan.[14] |
| 50 or more FTEs | ACA employer shared responsibility: offer affordable, minimum value coverage to at least 95% of full-time employees and their dependent children under 26, or risk a payment.[7][8] |
| 50 or more employees | Family and Medical Leave Act: up to 12 workweeks of leave in a 12-month period for eligible employees.[18] |
State and local laws can add requirements such as paid sick leave or disability insurance, so check your state labor department before you set your package.
ACA employer mandate rules for 2027
An applicable large employer is one that averaged at least 50 full-time employees, including full-time equivalents, in the prior year. Full-time means at least 30 hours of service a week or 130 hours a month. To count full-time equivalents, add up the monthly hours of non-full-time employees (up to 120 per person) and divide by 120.[8]
For calendar year 2027, the IRS set the payments at:[9]
- $3,780 per full-time employee, minus the first 30, if the employer does not offer coverage to at least 95% of full-time employees and at least one gets a Marketplace premium tax credit.[7]
- $5,670 per full-time employee who gets a premium tax credit, if coverage is offered but is not affordable or does not provide minimum value.[7]
For plan years starting in 2027, coverage counts as affordable if the employee’s required contribution is no more than 10.22% of household income.[10]
Low-cost employee benefits for small teams
- Voluntary benefits. The employer arranges a group rate and the employee pays, fully or partly, through payroll deduction. Common choices are accident, critical illness, disability and life insurance, telehealth access, dental and vision, pet insurance and legal services.[16]
- Telehealth and discount health memberships. A flat membership gives employees phone or video doctor visits and discounts at participating dentists, eye doctors, hearing providers and labs. These are discount plans, not insurance.
- Health reimbursement arrangements (HRAs). A QSEHRA lets employers with fewer than 50 full-time employees and no group plan reimburse health costs tax free, up to $6,450 for an employee or $13,100 for a family in 2026.[14] An individual coverage HRA, also called a CHOICE arrangement, can be offered by employers of any size, with no minimum or maximum contribution, and can differ by class such as full-time and part-time staff.[15] In 2026, 11% of firms with 10 to 199 workers that do not offer a health plan gave workers money to buy individual coverage.[1]
- SHOP coverage with the tax credit. Employers with fewer than 25 FTEs that pay at least half of premiums can get a credit of up to 50% of the premiums they pay (35% for tax-exempt employers) for two consecutive tax years.[11][12]
- Paid leave. Paid sick leave, holidays and vacation are the benefits small-firm workers have most often (71% to 75% access).[6]
Where Care Anytime fits
Care Anytime is a membership for teams, not health insurance. One membership includes 24/7 virtual doctor and virtual vet visits by phone or video at $0 per visit, mental wellness sessions, 20% to 50% off most dental procedures, and savings on vision, hearing, lab tests and vitamins. It is not a Qualified Health Plan under the ACA, so it does not replace a health plan for an employer that must offer one. It is built as an affordable alternative to expensive employee benefits for small teams.
See Care Anytime for employers Get in touch
Offering benefits to people who work under 30 hours? See benefits for part-time employees.
Frequently asked questions
How much does an employee benefits package cost a small business?
In June 2026, private employers with 1 to 49 workers spent $9.76 per hour worked on benefits, 25.9% of total compensation, according to the BLS. That breaks down to $2.97 for legally required benefits, $2.35 for insurance, $2.34 for paid leave, $1.23 for supplemental pay and $0.87 for retirement. Health coverage alone averages $9,804 a year for a single worker and $28,303 for a family in 2026, per KFF.
What are considered good benefits for employees?
The benefits private employers offer most often, per the BLS March 2026 survey, are paid sick leave and paid holidays (81% of workers have access), paid vacation (80%), retirement plans (72%), medical care (71%) and life insurance (59%). Paid family and medical leave (49%) and dental care (44%) are less common.
Are small businesses required to offer employee benefits?
Employers with fewer than 50 full-time and full-time equivalent employees are not applicable large employers under the ACA, so they are not subject to the employer health coverage rule. Every employer still pays legally required benefits: Social Security, Medicare, federal and state unemployment insurance and workers' compensation. Employers must also give every employee a notice about Health Insurance Marketplace coverage options.
What is a voluntary benefit?
A voluntary benefit is a service or product the employer offers at a group rate that the employee pays for, fully or partly, through payroll deduction. Common examples are accident and critical illness insurance, disability and life insurance, telehealth access, dental and vision, pet insurance, legal services and identity theft protection.
Do you have to pay for voluntary benefits?
Usually the employee pays. Voluntary benefits are paid fully or partly by the employee through payroll deduction, while the employer arranges the group rate and the deduction.
What is the cheapest way to offer health benefits to a small team?
Options that cap or avoid premium costs include a QSEHRA (for employers with fewer than 50 full-time employees and no group plan; up to $6,450 for an employee or $13,100 for a family in 2026), an individual coverage HRA, also called a CHOICE arrangement, with no minimum contribution, and SHOP coverage with the small business tax credit of up to 50% of premiums for employers with fewer than 25 FTEs. Discount memberships such as telehealth and dental savings plans cost less but are not insurance.
What are the ACA rules for part-time employees?
The ACA counts employees who average at least 30 hours a week, or 130 hours a month, as full-time. Large employers must offer coverage to at least 95% of full-time employees; they do not have to cover part-time workers, but part-time hours count toward the 50-employee threshold. See our guide to benefits for part-time employees.
Related
Sources
- 1 KFF. 2026 Employer Health Benefits Survey. Accessed Oct 31, 2026.
- 2 U.S. Bureau of Labor Statistics. Employer Costs for Employee Compensation, June 2026. Accessed Oct 31, 2026.
- 3 U.S. Bureau of Labor Statistics. ECEC Table 6: private industry workers by establishment size, June 2026. Accessed Oct 31, 2026.
- 4 U.S. Bureau of Labor Statistics. Employee Benefits in the United States, March 2026. Accessed Oct 31, 2026.
- 5 U.S. Bureau of Labor Statistics. Table 2. Medical care benefits: access, participation and take-up rates, March 2026. Accessed Oct 31, 2026.
- 6 U.S. Bureau of Labor Statistics. Table 6. Selected paid leave benefits: access, March 2026. Accessed Oct 31, 2026.
- 7 Internal Revenue Service. Employer shared responsibility provisions. Accessed Oct 31, 2026.
- 8 Internal Revenue Service. Determining if an employer is an applicable large employer. Accessed Oct 31, 2026.
- 9 Internal Revenue Service. Rev. Proc. 2026-22: 2027 employer shared responsibility payment amounts. Accessed Oct 31, 2026.
- 10 Internal Revenue Service. Rev. Proc. 2026-26: 2027 required contribution percentage. Accessed Oct 31, 2026.
- 11 HealthCare.gov. The Small Business Health Care Tax Credit. Accessed Oct 31, 2026.
- 12 Internal Revenue Service. Small Business Health Care Tax Credit and the SHOP Marketplace. Accessed Oct 31, 2026.
- 13 HealthCare.gov. SHOP Marketplace overview. Accessed Oct 31, 2026.
- 14 HealthCare.gov. Qualified Small Employer HRA (QSEHRA). Accessed Oct 31, 2026.
- 15 HealthCare.gov. Individual coverage HRA (CHOICE arrangement). Accessed Oct 31, 2026.
- 16 BambooHR. What are voluntary benefits?. Accessed Oct 31, 2026.
- 17 U.S. Department of Labor. FAQs about Affordable Care Act implementation (Part XVI). Accessed Oct 31, 2026.
- 18 U.S. Department of Labor. Fact Sheet #28: The Family and Medical Leave Act. Accessed Oct 31, 2026.
- 19 U.S. Bureau of Labor Statistics. Handbook of Methods: National Compensation Survey concepts. Accessed Oct 31, 2026.