Core Documents

  A   Section 125 Premium Only Plan  is a tax-saving benefit that allows employees to pay for their health insurance premiums with   pre-tax dollars . This type of plan, governed by   Section 125 of the Internal Revenue Code , helps both employers and employees   reduce taxable income and save money   on healthcare costs. What is a Section 125 Premium Only Plan? A  Premium Only Plan   is a simple cafeteria plan that lets employees  deduct health insurance premiums  from their paycheck before taxes are applied. This reduces their  taxable income , leading to lower payroll taxes for both employees and employers. The plan is easy to set up and is commonly used by small and mid-sized businesses to offer tax-advantaged benefits. Key Benefits of a Section 125 For Employees: Tax Savings:  Employees pay for health insurance premiums with pre-tax dollars, reducing their overall tax burden. Increased Take-Home Pay:  Lower ...

  Health insurance is an essential financial safeguard against unexpected medical expenses. In addition to providing coverage for medical care, it also offers potential tax savings that can reduce your overall financial burden. Understanding how to maximize your health insurance tax benefits can help you save money while ensuring adequate healthcare coverage. How Health Insurance Can Save You on Taxes Health insurance can provide several tax advantages, depending on your employment status, income, and the type of plan you choose. Here are some key ways you can benefit: Tax-Deductible Premiums  – If you’re self-employed, you may be able to deduct 100% of your health insurance premiums from your taxable income. Health Savings Accounts (HSA) Contributions  – Contributions to an HSA are tax-deductible, and withdrawals for qualified medical expenses are tax-free. Flexible Spending Accounts (FSA) Benefits  – Contributions to an FSA are made with pre-tax dollars, reducing y...

  A   POP plan document   is a crucial component of a Premium Only Plan (POP), which allows employees to pay for health insurance premiums with pre-tax dollars. This IRS-approved plan helps businesses and employees save on taxes while maintaining valuable benefits. Understanding how a POP plan works and its requirements can help businesses implement an effective benefits strategy. What is a POP Plan Document? A POP plan document is a written plan required by the IRS to establish and maintain a Premium Only Plan. It outlines the rules and procedures for deducting employee insurance premiums on a pre-tax basis, reducing taxable income for both employees and employers. Benefits of a POP Plan Tax Savings for Employees  – Employees can lower their taxable income by paying for health insurance premiums before taxes are applied. Reduced Payroll Taxes for Employers  – Businesses can save on FICA and other payroll taxes, making it a cost-effective benefits option. Simple...