Employers with fewer than 20 people can be a good fit. The owner may decide alone, and you can get to know everyone. The risk is that each small contract can take a lot of admin. Keep the setup simple and the same for every group.
Why small employers say yes
A monthly membership is a fixed cost.
Keep the admin small
A 6-person contract that needs its own invoice format, custom reports and a special enrollment process will cost more in time than it brings in. Use one standard setup for every small group:
- One price sheet, with no custom discounts below a set group size.
- Card or ACH on file, charged automatically each month, instead of invoices you chase.
- One contract template, reviewed once by your attorney.
- One simple roster update each month, by email or form.
Price for the work
In a made-up example, a 6-person group at $70 each brings $420 a month. If you spend two hours a month on billing questions and roster changes for it, that time has a cost. You could charge small groups the regular individual rate, or add a small monthly admin fee, and offer group pricing only above a set size.
Watch the group as a whole
One small group won't change your numbers much. Ten of them will. Track small employers together on your employer revenue line, and check once a quarter how many hours they take. Here's how to set up the tracking.
When a small group grows
If a 12-person employer grows to 40, move them to your regular employer contract terms at renewal. Put that in the first contract so it isn't a surprise.
What I'd do this week
- Write a one-page price sheet for groups under 20.
- Move existing small groups to automatic payment if you can.
- Estimate the hours you spend each month on small employer admin.
Common questions
Should small groups get a discount?
Only if the admin and the care they use leave room for one. You could hold the regular rate until a group reaches a set size.
Can a small employer pay by card?
Yes. Card fees cost you something, so compare them with ACH before you decide which to offer.
Do small groups need a written contract?
Yes. A short one is fine, but have your attorney review the template once.
Want small employer accounts that don't eat your week?
We reconcile every account every month and send your P&L and Balance Sheet by the 15th, so decisions like this start from real numbers. If that's what you need, apply to work with us.