- Employee health care costs are increasingly eating up larger shares of payroll costs for America’s smallest businesses, according to a new analysis from the JPMorgan Chase Institute. The pain of health care costs is nothing new, but this analysis, based on de-identified data from Chase business banking accounts, offers a more granular look at the disproportionate burden on the smallest businesses that often isn’t captured by other data. For the typical small business with at least two employees and revenues of $600,000 or less, 12 percent of payroll costs went to health care benefits last year, the analysis found. For businesses with revenues of at least $2.4 million, that figure was 7 percent. The analysis is the latest to dive into the economic impacts of rising health costs at a time when small businesses are still grappling with inflation and a tight labor market. (Article here)
July 16, 2024
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