GLENVIEW, Ill. — April 16, 2008 – A recent survey conducted by online payroll service SurePayroll found that over half of small businesses (56%) do not offer a company healthcare plan to employees, with most stating that doing so would be too costly. The survey also indicates that when it comes to ideas for a solution and the government's role in healthcare, there is no clear agreement, but the candidates' stances on the issue will have a huge impact on the small business owner vote.

The number of small business owners opting to offer healthcare plans has decreased dramatically in the past two years. Compared to results from a similar survey conducted by SurePayroll in 2006, 32 percent less small businesses indicate they are now offering health insurance.

For many small business owners, it is not a lack of desire to offer healthcare benefits that keeps them from doing so. In fact, 28 percent of owners who do not currently offer benefits said they felt it was the responsibility of small business owners to provide a healthcare plan for employees.

So what accounts for the noticeable decrease? According to SurePayroll President Michael Alter, the troubled state of the economy plays the largest part.

"It was tough before and now it's getting even tougher for small business owners to offer health insurance. The cost of doing business is going up – health insurance premiums are going up. And while many small businesses have actually seen slight growth in this so-called recession, talk of economic doom hangs over their heads," says Alter. "In order to be confident their businesses will survive, many owners feel they have no choice but to cut costs wherever possible, including on healthcare coverage."

Small Business Owners Split on Role of Government in Healthcare, but Candidates' Stances will Have Huge Impact on Small Business Owner Vote

There's no doubt that healthcare is a big issue in the upcoming presidential election. Eight in 10 owners deemed healthcare "very important" or "important" in considering who they will vote for.

But as far as who has the best answer to solve this dilemma, there is no clear cut winner. When asked which candidate has, or will have, the best plan for funding healthcare, 42 percent of small business owner respondents say Senator McCain is the best candidate to solve the healthcare dilemma, while Senator Obama was the clear leader in the democratic camp, with 38 percent of respondents indicating he is the best candidate.

Small business owners' write-in responses reflected the split numbers. Almost 4 out of 10 (38%) small business owners believe that small business owners should be responsible for providing health insurance to employees, and just over 6 out of 10 (62%) don't.

While some of their comments were aligned with the interest in universalized healthcare, or at least suggest an increased government role, others said political leaders should play no part in healthcare.

"I would prefer a government funded plan, supported through personal tax increases," stated one small business owner respondent. "Until that happens, I think business owners should cover healthcare insurance costs for their employees and families."

According to another business owner, "Healthcare is the responsibility of the individual, not business or the government. Small businesses already shoulder the burden of tax and child support collection and payment, in both time and money. Adding healthcare to that is crippling for a small business."

Small Business Owners Suggest a Link Between Hiring Ability and Healthcare

Two out of 10 small business owner respondents indicated that they could recall at least one experience in which a prospective employee turned down an offer for employment at their company because of a lack of healthcare benefits.

According to Alter, the findings speak to the growing importance of small business owners to offer healthcare benefits, even in trying economic times.

"Small business owners are in a catch twenty-two. Even though it is increasingly difficult to offer healthcare benefits, a company that offers little or no healthcare benefits is likely to put up an instant red flag for potential talent," says Alter. "Footing all healthcare costs on their own is simply not an option for many people, and businesses could find it harder to interest talented individuals without offering benefits."

As one respondent put it: "I can't afford it, but can't afford not to have it."

About SurePayroll:

Voted Editor's Choice for best payroll service by PC Magazine, SurePayroll is America's largest full-service online payroll service. In addition to its payroll and ClickFREE™ tax file and pay service – which allows a user to complete the entire payroll process in minutes – SurePayroll provides HR and compliance resources, workers' compensation products and 401(k) retirement solutions designed specifically for small businesses.

SurePayroll also offers a private-label and co-branded payroll service to accounting and banking partners to offer payroll processing to their small business clients.

SurePayroll is passionate about small businesses and their payroll. The company is dedicated to providing an extremely friendly and simple payroll experience – at a price small business owners can afford. For more information, visit www.surepayroll.com.