Core Documents

  When it comes to maximizing employee benefits while reducing taxable income, a   POP plan document —short for Premium Only Plan—offers one of the simplest and most cost-effective solutions. Authorized under Section 125 of the IRS tax code, a POP plan allows employees to pay their portion of insurance premiums using pre-tax dollars. But to comply with IRS regulations, employers must have a valid and up-to-date POP plan document in place. What Is a POP Plan Document? A  POP plan document  is a written plan that outlines how a company will administer its Section 125 Premium Only Plan. This document is required by the IRS and details the rules, eligibility requirements, and benefits of the plan. By implementing a compliant POP plan document, employers can allow employees to deduct their share of health, dental, vision, and other insurance premiums directly from their paychecks before taxes are calculated. This reduces taxable income for employees and lowers payroll tax...

  A Health Reimbursement Arrangement (HRA) is a powerful tool that allows employers to offer tax-advantaged benefits to employees by reimbursing qualified medical expenses. One of the most critical components of establishing an HRA is creating a compliant   HRA plan document . This document serves as the foundation of the plan, ensuring legal compliance and clear communication between the employer and employees. For those exploring HRA options, understanding the role of the plan document is key—and resources like   this   Core Documents offer valuable insight. What Is an HRA Plan Document? An  HRA plan document  is a formal, written description of the Health Reimbursement Arrangement that an employer sets up for employees. It outlines all the rules of the plan, including: Eligibility requirements Contribution limits Reimbursement procedures Covered expenses Claims process Tax treatment of benefits The plan document ensures that the HRA complies with IR...

  In today’s rapidly evolving healthcare landscape, employers are seeking flexible, cost-effective ways to provide health benefits without the burden of traditional group plans. One increasingly popular solution is the Individual Coverage Health Reimbursement Arrangement (ICHRA)—a tax-advantaged option that empowers both employers and employees. What Is an Individual Coverage HRA? An  Individual Coverage HRA  is a type of Health Reimbursement Arrangement that allows employers to reimburse employees for health insurance premiums and qualified medical expenses. Unlike traditional group health insurance, ICHRAs give employees the freedom to choose the plan that best suits their individual needs. Employers determine a monthly allowance, and employees use those funds to pay for their own individual health insurance or eligible healthcare expenses. It’s a modern approach to benefits that offers flexibility, tax savings, and customization. Key Benefits of an ICHRA for Employers ...

  In today’s competitive job market, offering attractive benefits beyond salary is critical for recruitment and retention. One standout benefit is the   Employer Education Assistance Program —a powerful initiative that not only supports employee growth but also addresses one of the most pressing issues of our time: student loan debt. Under  Section 127 of the Internal Revenue Code , employers are allowed to provide employees with up to  $5,250 per year in tax-free educational assistance . This includes tuition, fees, books, and even, until the end of 2025,  student loan repayment assistance . This benefit plays a pivotal role in easing the financial burden on employees while offering companies a competitive edge. How the Program Works The  Employer Education Assistance Program  is fairly straightforward. When implemented correctly, employers can reimburse or directly pay for eligible educational expenses, and employees won’t owe taxes on the amount rec...

  Raising a child is rewarding, but it also comes with significant financial responsibilities—especially when it comes to childcare. Fortunately, working parents in the United States can take advantage of tax-saving tools like a   Flexible Spending Account (FSA)   for   tax-free childcare expenses . One such benefit, outlined under   IRC Section 129 , is the   Dependent Care Assistance Plan (DCAP) —an FSA specifically designed to reduce the burden of childcare costs by offering   pre-tax savings . What Is a Dependent Care FSA? A Dependent Care FSA is an employer-sponsored benefit that allows employees to set aside pre-tax dollars to pay for eligible childcare expenses. By participating in a Dependent Care FSA, families can save up to 30% on childcare costs, depending on their tax bracket. This makes it a powerful tool for managing the financial demands of working parenthood. How  Tax-Free Childcare Expenses FSA  Work When an employee opts int...

  When it comes to managing group health plans, many employers unknowingly leave themselves exposed to major compliance risks. Under the Employee Retirement Income Security Act (ERISA) and the Affordable Care Act (ACA), businesses offering group health benefits are legally required to provide a Summary Plan Description (SPD)—and for most, that means preparing a   Wrap SPD . If you're not already working with an   ERISA Wrap SPD expert , now is the time to take action and avoid costly penalties. What Is an ERISA Wrap SPD? A Wrap SPD is a legal document that “wraps around” your existing insurance policies and benefits booklets, supplementing them with all of the ERISA-required disclosures and language. While your insurance carriers may provide certificates of coverage, those documents  do not  meet ERISA’s strict documentation requirements on their own. An ERISA Wrap SPD ensures you: Fully disclose participant rights and plan details Meet documentation standards r...