HRA Software can be the ideal health benefits solution for 1099 contractors.
(PRWEB) June 20, 2012
Zane Benefits, a software company, offers flexible and comprehensive alternatives to traditional health benefits. Today, the company published information outlining how businesses are using its software to offer health benefits to 1099 contractors.
A common question Zane Benefits receives is: "Can I Offer a Health Reimbursement Arrangement (HRA) to 1099 Contractors?"
Technically, the answer is no. But, many businesses use our HRA Software to offer health benefits to 1099 contractors. The primary difference is that, unlike W-2 employees, 1099 contractors must report all HRA reimbursements as income on their personal tax return.
Due to its flexibility, hra software can be the ideal health benefits solution for 1099 contractors because:
- The 1099 contractors can only use the money on health insurance and medical expenses;
- Unused amounts remain with the company when the 1099 contractor is no longer working with the company;
- The plans help companies recruit and retain the most talented 1099 contractors.
- Many 1099 contractors can already deduct 100% of the cost of their individual health insurance on their personal tax return.
- The business is not required to pay payroll taxes on the reimbursements.
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About Zane Benefits, Inc.
Zane Benefits, Inc, a software company, helps insurance brokers, accountants, and employers take advantage of new defined contribution health benefits and private exchanges via its proprietary SaaS online health benefits software. Zane Benefits does not sell insurance. Using Zane’s platform, insurance professionals and accountants offer their clients a defined contribution plan with multiple individual health insurance options via a private health exchange of their choice. Learn more at http://www.zanebenefits.com.