Members of LLCs and Partners in LLPs Generally Cannot Participate

These plans are great for any size business.

Without a written plan document, the plan is not compliant with Section 125 of the Code.

Core Documents provides employers with everything they need to establish an IRS- and DOL-compliant Section 125 benefits plan in PDF format for just $99. The extent of an employees advantages arising from cafeteria plan participation will depend on the employees tax status, the amount of his or her taxable income and pre-tax salary reduction elections, the scope of state and local laws, and the cafeteria plans features. Two common types of section 125 plans are: Section 125 planscanbe usedto reimburseyou and your employees for qualified expenses related to your companysmedical plan coverage, dental and vision coverage,and fordependent care. Whether you are looking to enrich current benefit plans, offset benefit cutbacks, or implement cost saving measures, our highly trained sales staff will work diligently with you to ensure that each plan is customized to meet your specific needs.

All documentation is under Copyright Protection of HR Service and to be used by permission only. Employers save the matching Social Security (6.20%) and Medicare (1.45%) taxes, which equates to 7.65% (1.45% for municipalities) of all the dollars put through the plan, a substantial savings. Increased Take-Home Pay. If only a few employees choose to take advantage of the ability to pay health insurance premiums with pre-tax dollars, the employer can still realize a net financial gain.

Core Documents provides everything an employer needs to establish an IRS- and DOL-compliant plan in the Core 125 plan document package.

Expanding Healthcare Benefit Options For Small Employers.

Post-Tax Benefit to Promote Healthy Lifestyle.

Employer contributions to the cafeteria plan are usually made pursuant to salary reduction agreements between the employer and the employee in which the employee agrees to contribute a portion of his or her salary on a pre-tax basis to pay for the qualified benefits.

The plan may make benefits available to employees, their spouses and dependents. Use the calculator below to determine how much your business can save annually.

Ph: 385.237.5680 x1 or Toll Free: 833.685.8400 x1, is also referred to as a Cafeteria Plan or Flexible Benefits Plan (. Share Proven Cost Cutting Benefit Plan Enhancement! Like a sole proprietorship, a Sub chapter S corporation can have a cafeteria plan for its common-law employees.

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Setting up and maintaining Premium Only Plan documents for compliance is easy with our automated online system.

In addition to enabling the employer to save on its share of FICA (Social Security and Medicare) and FUTA (federal unemployment) taxes, a cafeteria plan can: Employees who participate in a cafeteria plan may experience the following advantages and disadvantages. Our secure online ordering system accepts: If you prefer to order by fax, click here.

An FSA lets employees set aside pretax funds each year to pay for qualified medical expenses, such as: See how much youyour business couldpotentially save in taxes with a Premium Only Plan (POP) and a Flexible Spending Account (FSA).

Help reduce your FICA, federal, and state and local taxes for your company and your employees by combining a section 125 premium only plan (POP) and flexible spending account (FSA) with your companysgroup health insurance. Failure to administer a plan in accordance with the written terms of the plan and the Internal Revenue Code can result in the loss of the benefits' pretax status. Making HR, Compliance & Benefits Administration Simple. Contact info@GoCGO.com.

Since more participants in the plan equate to more tax savings for the employer.

In 2018, this employee earns $75,000 and her husband (a student) earns no income.

All rights reserved. The employer contributes to each employees plan to promote increased participation by those not yet in the section 125 plan.

Premium only Plans are easy to set up and manage online.

POP documents are automatically updated with IRS changes. We ensure you meet all Federal law requirements by submitting a Section 125 if you offer tax-free benefits to your employees.

The Premium Only Plan is the building block of the Section 125 Plan. Order your $99 Section 125 POP Package Today!