125 Tax Plans
Almost every employee pays for some portion of their health insurance coverage and/or coverage for optional coverage like vision. dental, cancer or life insurance.
A 125 Tax Savings Plan allows employees to contribute earnings to an account that can be used to pay for these premiums with pre-tax dollars. And 125 Tax Savings Plans can include other health-related expenses like medical supplies, eyewear or contact lenses, etc.
What is a 125 Qualified Plan?
125 Qualified Plan
Establishing a 125 Tax Savings Plan is a tested way to extend significant additional health benefits to employees without adding costs to an employee’s gross income. Employees can choose to put a certain amount of pre-tax dollars into their account each year and then withdraw the funds as they pay qualifying expenses throughout the year.
The IRS also allows for changes in the amount of withholding based on certain “qualifying events” such as a change in family status, changes to other insurance benefits or coverages, etc.
For smaller businesses, establishing 125 Tax Savings Plans can give you a competitive advantage in recruiting and retaining staff.
Managing the 125 Qualified Plan
Professional Benefit Solutions will facilitate the management of your 125 Plan, assuring that your employees’ deductions are managed and that the processing of their qualified reimbursements go smoothly. This seamless management allows your employees to utilize this benefit without adding a management responsibility to your Human Resources staff.
Other Insurances for Employees
Offering Group Life Insurance through your business is a cost effective way for employees and their dependents to gain a sense of security if tragedy strikes. As a benefit, Life Insurance becomes a dynamic recruitment and retention tool. We'll help you determine what to offer and help your employees choose the right policy for their circumstances.
Professional Benefit Solutions will provide benefit options for your employees for income replacement through AFLAC should they experience a short or long period during which they are unable to work due to an extended illness or injury. These funds, paid directly to the employee, allow them to cover routine expenses or other health needs as they convalesce.
What once an overlooked employee benefit has come to be one of the most important in keeping families financially secure and assets protected. Nearly 70% of the population will require nursing home, skilled care or home health care at some point. Purchasing a plan while an employee is still young and healthy is a good investment in their future financial stability.
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