From cash flow projections to tax strategy, your small business clients look to you for advice on almost everything. But when the conversation shifts to human resources — whether that means setting up health and vision insurance or choosing a Broker of Record — being a trusted advisor usually means getting outside help.
What you’ll learn
What you’ll learn
Key takeaways
- You can confidently advise clients on benefits by asking open-ended questions and discussing general advantages, without crossing the line into licensed broker territory.
- Introducing stepping-stone benefits (such as HRAs, HSAs, and FSAs) can help ease the financial concerns of small business owners.
- A trusted partner can handle the heavy lifting of compliance, plan selection, and enrollment, allowing you to focus on your advisory role.
It makes sense. There’s often a line between providing business advice and acting as an unlicensed insurance broker. You want to help your clients build a great workplace, but you also need to protect your practice.
The good news? You don’t need to have a broker’s license to guide your clients in the right direction. You just need to know how to spot the cues, navigate the boundaries, and know when to hand the conversation off to the pros.
Ignoring benefits comes with a cost
Cost is typically the biggest barrier to entry for small businesses. According to the 2025 KFF Employer Health Benefits Survey, family premiums for employer-sponsored health insurance reached an average of $26,993 — a 6% increase from the previous year. This jump outpaced both general inflation (2.7%) and wage growth (4%). Furthermore, workers at small firms face steep single deductibles, averaging $2,631. It’s no wonder that only 53% of small firms offer health benefits, compared to 98% of large firms.
But ignoring benefits altogether comes with an even heftier price tag: employee turnover and staffing in general (and getting top performers to consider your company when they’re looking around). When clients express concerns about the upfront cost of offering benefits, you have the opportunity to act as a strategic advisor. Help them weigh the cost of a benefits package against the financial drain of replacing their best people.
Did you know?
66% of small businesses handle HR-related responsibilities without any assistance. When it comes to navigating the complexities of benefits, they’re often flying blind and looking to you for direction.
Source: OnPay Small Business Outlook
Stepping stones: Clients don’t have to go all in
Many small business owners think offering benefits means they have to absorb 100% of the costs for a group health plan. You can help ease their concerns by helping them understand there’s all different kinds of ways to set up benefits plans and contribution strategies to evaluate, that make sense for when budgeting. The point is, our team can help your clients explore solutions.
For example, by opting for pre-tax accounts, your clients can set up a cost-share scenario with employees. This allows employees to contribute their own pre-tax wages to cover medical expenses, which reduces tax liability for everyone. (Keep in mind that to take advantage of certain accounts, the business will first need to offer a qualifying group medical plan).
There’s different ways to reduce tax liability for both the employer and employee. Examples include Section 125 plans (also known as POP or cafeteria plans) additionally, HSAs, FSAs, HRAs, etc. The takeaway is there are lots of options to consider, and OnPay can help you explore the solution that’s right for you.
- There are different contribution strategies, however, the baseline rule is that the employer has to contribute at least 50% of the employee rate on the lowest cost option plan that they are offering to their employees.
- The other rule is there are participation rules – by carrier and state – typically anywhere from 50 to 75% of your benefit-eligible employees must enroll in order to have coverage.
Timing the transition
Clients can roll out a health plan at any point during the calendar year. However, many small business owners use the special enrollment period (SEP) to take advantage of less stringent requirements. Learn more about how this works. For example, pre-tax accounts like HRAs, HSAs, and FSAs are powerful, budget-friendly ways to help workers pay for medical expenses with tax advantages.
— Andrew Rothenberg, OnPay's Vice President of Insurance
During this timeframe, both the contribution baseline and the participation rules are completely waived. This makes it much easier for small businesses to launch a benefits program without worrying about hitting specific enrollment numbers or contribution minimums right out of the gate.
Keep in mind there’s no flexibility on the SEP enrollment timeline, as it’s a strict federal deadline.
Tell your clients these are plans they should speak to OnPay about – some terms you may have heard of:
| Account Type | How it works | Key benefit |
| HRA (Health Reimbursement Arrangement) | The employer controls healthcare spending and decides reimbursement amounts. | 92% of employers who adopt an HRA stick with it year over year. |
| HSA (Health Savings Account) | Requires a high-deductible health plan; accounts travel with the employee forever. | Offers incredible long-term savings and lowers employer payroll taxes. |
| FSA (Flexible Spending Account) | Employees set aside pre-tax wages for qualified medical or dependent care expenses. | Lowers the company’s FICA and Medicare tax responsibilities — a true win-win. |
| QSEHRA (Qualified Small Employer HRA) | Designed for businesses under 50 employees without group health; provides a tax-free monthly allowance. | Reimburses employees for their own individual premiums and medical expenses. |
| ICHRA (Individual Coverage HRA) | A highly flexible alternative for businesses of any size to reimburse individual premiums tax-free. | Empowers employee choice while allowing the employer to maintain budget control. |
If you ever have questions about how these plans work — or which ones might be the best fit for your clients — our team is here to help. But how do you know when a business is actually ready to make the leap? Here are a few cues to look out for.
Identifying a client who is ready for benefits
Though not every small business is ready to roll out a benefits program, many are closer than they think. Deciding when to make the leap often comes down to timing and business health. Listen for these cues during your regular check-ins:
- They’re struggling to hire: When clients complain about losing candidates to larger competitors, a solid benefits package can be the difference-maker.
- They’re experiencing rapid growth: A sudden increase in headcount or revenue usually means it is time to formalize their HR offerings to maintain momentum.
- They want to lower their tax liability: Employer contributions to health insurance offer significant tax advantages that can improve their bottom line.
- They’re managing benefits manually: If they are using a mix of spreadsheets and paper checks to reimburse employees for health costs, it is time for an integrated solution.
Once you spot these cues, bringing up benefits is simply a matter of asking the right questions.
Questions to start the conversation
Transitioning from compliance to advisory services means asking the right questions. If you notice any of the cues above, here are three simple ways to introduce the topic of benefits:
- “How are you currently competing for talent in your industry?”
- “Are you offering any benefits like an HRA, HSA, to help keep your best employees around?”
- “Have you considered how pre-tax benefit contributions could impact your bottom line this year?”
- “I’m going to get you connected with OnPay. They have a great team that can help you explore setting up a benefits program and can answer your questions.”
Establishing boundaries (without crossing the line)
Once the conversation starts, it’s important to know the parameters of what’s safe to discuss and what’s better left to a benefits expert. Unlicensed individuals cannot sell, solicit, or negotiate insurance products. The takeaway? If you do not have a broker’s license, it makes sense to avoid:
- Recommending a specific insurance carrier, policy, or plan.
- Discussing specific plan rates, terms, conditions, or coverage details.
- Comparing different insurance policies for your client.
- Suggesting that you are offering health insurance services directly.
What you can do:
Talk about the advantages of offering benefits, like employee retention, tax savings, overall wellness, and the positive impact it can have on a company’s culture.
But if a client asks for specific plan advice, it’s fair to take a step back and refer them to OnPay. Here’s a way to keep the conversation going without putting yourself in an awkward spot.
“I’m not a licensed broker, but I know a great team at OnPay who can help you build a plan that makes sense for the needs of your business.”
It’s also fair game to let clients know that health insurance pricing varies based on things like age, location, and plan design, and refer them to a trusted partner to take the next steps. The pricing is based on your client’s employees’ demographic and location.
Acronyms abound in benefits compliance
When a business decides to offer perks like health insurance or a 401(k), it triggers a handful of federal regulations. Part of being a trusted advisor is helping your clients understand what they are signing up for. Here is a quick breakdown of the rules to keep on your radar:
- Affordable Care Act (ACA): Requires employers with 50+ full-time equivalent employees to provide affordable health insurance and file Forms 1094-C and 1095-C.
- Employee Retirement Income Security Act (ERISA): Protects employees’ retirement and health plans. Employers must provide summary plan descriptions to their staff and maintain strict fiduciary standards.
- COBRA: Employers with 20+ employees must offer a continuation of health coverage when an employee leaves. Watch out for state-specific “mini-COBRA” continuation laws, too.
- Health Insurance Portability and Accountability Act (HIPAA): Strictly protects employee health information. Employers must actively safeguard all protected health data.
- Pre-tax IRS requirements: Employers have to meet specific IRS rules, such as maintaining Section 125 cafeteria plan documents and adhering to group participation standards.
If you’d like, download these tips in our Compliance 101 for Accountants checklist for an easy-to-reference resource, available here.
Next steps: OnPay’s team can take it from here
Navigating benefits compliance can be a handful for any business, but it shouldn’t hold your clients back from building a package that employees will love — and put your company a notch above the competition. When you speak to a client who is ready for benefits, you can feel confident connecting them with the team at OnPay. Our licensed, in-house brokers work directly with your client to answer health insurance questions, handle enrollment paperwork, and build strategic, budget-friendly programs.
And because our payroll and benefits live in one system, employee deductions sync automatically with every pay run — no double-data entry required. We’re here to help your clients exceed their goals for benefits administration — and we’d love the opportunity to answer questions and build a plan that they and their employees will love!
See how easy it is to offer payroll services your way.
Andrew Rothenberg is OnPay’s Vice President of Insurance. A fully-licensed insurance broker, he brings decades of industry experience to help small businesses navigate their benefits programs. He leads the insurance division, supporting coverage options for small and mid-sized businesses. A graduate of Emory University, he previously held vice president roles at EPIC, OneDigital, and ADP.