Park City, Utah (PRWEB) October 14, 2013
Today, Zane Benefits, the number one online small business health benefits solution, published new information on owner participation in Section 105 plan.
According to Zane Benefits’ website, small businesses often use Section 105 Medical Reimbursement Plans as a solution for small business health insurance.
There are two common types of Section 105 Plans:
The first type is a Section 105 Plan used to self-fund a health plan.
The second type of Section 105 Plan is found in the form of medical reimbursement plans.
For small businesses using a Section 105 Medical Reimbursement Plan, owners can and should participate in the company's plan. However, whether or not owners are eligible to receive reimbursements 100% tax free depends on how the company files taxes, and the owner's status.
C-Corporation ("C-Corp") owners can participate fully in Section 105 Plans.
Sole Proprietors, Partners, or S-Corp shareholders that own >2% of the company's shares can use the platform to reimburse health insurance expenses
The non-C-Corp owners specified above may receive reimbursement from their company for qualified health insurance premium expenses, and they may use the Section 105 platform to receive and track these reimbursements.
IRS rules limit the deductibility of medical expenses for certain business owners. Using an online Section 105 software platform enables business owners to secure all income and payroll tax deductions to which they are legally entitled.
Click here to read the full article.
About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHealth") for defined contribution health care. The flagship software provides a 100% paperless administration experience to small businesses and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about Zane Benefits, visit http://www.zanebenefits.com.