In a post-ACA health insurance America, every employer should establish a Section 125 cafeteria plan to reduce insurance cost and save money.
Bradenton, FL (PRWEB) February 05, 2014
Core Documents, the nation’s premier provider of affordable Section 125 Cafeteria Plan documents and HRA Plan Documents, reports how many employers are rushing into Section 125 Premium Only Plans to offset recent ObamaCare insurance premium increases.
One of the most untapped employee benefits for small businesses today is the Section 125 Premium Only, Health FSA, and Dependent Care Assistance FSA plans, sometimes referred to as a Cafeteria Plan. These plans allow employees to withhold a portion of their salary on a pre-tax basis to cover the cost of qualifying insurance premiums, medical expenses and dependent care expenses. Because Section 125 Cafeteria Plan benefits are exempt from federal and state income tax, an employee’s taxable income is reduced, thereby increasing their take-home pay. And because the Section 125 Cafeteria Plan reduces employee gross income for purposes of income tax, the employer also enjoys a reduction in their payroll tax liability by eliminating matching FICA taxes of 7.65% and workers’ compensation (depending on your state).
As a result of ObamaCare-induced insurance rate hikes, employers nationwide are rushing to set up Section 125 Premium Only Plans in order to get some relief. With these plans, they can neutralize the negative effects of insurance premium increases with reduced payroll tax liabilities.
Some employers overlook Section 125 Premium Only and Cafeteria Plans because they believe they are too difficult to setup and administer. In addition, many CPAs don’t understand these plans, let alone offer assistance; most insurance agents don’t make a commission on Section 125 Cafeteria Plans, so they choose to ignore them altogether.
Through the use of Core Documents’ Section 125 Cafeteria Plans, the cost of implementing a plan is recovered through tax savings during the first few months for all employers. So, what are you waiting for? Visit our website at http://www.CoreDocuments.com, where you can order your complete kit and get started right away. Now is the time to act – to benefit your employees and your business – and start saving money.
Call Core Documents today at 1-888-755-3373 and speak to a Section 125 Cafeteria Plan expert.