Cafeteria Plan Employee Benefit Should be Another Feather in Your Benefit Program's Cap
IRS code allows for employers to implement a pre-tax Section 125 Cafeteria Plan as an employee benefit. This plan allows for unreimbursed insurance expenses to be paid pre-tax. Examples include insurance premiums, doctors office co-pays, prescription co-pays, eye exams, eye glasses, contact lenses, laser eye surgery, orthodontics, and more...Implementing a Section 125 Cafeteria Plan will strengthen your benefits program, save your company FICA taxes, and save participating employees 17% to 40% in taxes (depending on their income tax bracket). What other benefits can you implement that strengthen your benefits package and you can do so with little or zero out-of-pocket dollars?If your employees are paying any portion of the monthly insurance premiums, then to save FICA taxes, implement the Premium Only Plan (POP) portion of a pre-tax 125 plan. A POP allows for employees to pay their portion of the group insurance premiums on a pre-tax basis and is a good start to saving taxes for you and your employees.
You will save FICA taxes while saving your employee 17% to 40% on dollars they're already paying. With a POP there is no real ongoing administration as you'll use payroll to take care of the dollar flow's. Discrimination testing is a requirement that will need to be performed at least once at the beginning of each plan year to ensure your plan is in compliance.To take your pre-tax 125 plan to the next level means implementing the Flexible Spending Accounts (FSA) portion of a pre-tax 125 plan. Generally, there are two FSA accounts including a Medical FSA (medical / dental / vision) and a Dependent / Elder Daycare FSA.These FSA accounts will allow for the unreimbursed out-of-pocket expenses to be paid on a pre-tax basis. Examples include dependent daycare, office co-pays, prescription co-pays, eye exams, eyeglasses, contacts, orthodontics, and more.These flexible spending accounts (FSA) are an easy way to supplement any gaps in your existing benefits program, save money for you and your employees, and is a great morale booster.If you're a small employer that doesn't have a dental or vision plan because of costs.
Implementing the FSA will at least allow for your employees who have these types of out-of-pocket expenses to pay them on a pre-tax basis. Wouldn't it make your employees happy to be able to save 17% to 40% on a $5,000 orthodontic expense for a family member? That would equal a $1,250 tax savings for an employee in the 25% tax bracket. Not to mention, it would save you over $380 in FICA taxes as well.The FSA accounts are where the administration hassles of receiving claims, verifying claims as eligible expenses, answering employee questions, reimbursing claims, etc. are seen. Which may lead you to consider outsourcing your ongoing administration through a qualified third party administrator.
If you've only got a few participants in the FSA in-house administration is something you can probably handle, but with monthly minimum administrative fees outsourcing is pretty economical.Partnering with a qualified Cafeteria Plan Administrator such as BusinessPlans, Inc. (BPI) - myCafeteriaPlan will provide you and your employees with online account access 24-hours a day. As an employer, your 24-hour Internet access allows you to query reports, add employees, term employees, and check the status of your plan around the clock when you want and need your plan information.Every organization has limits on the resources it has available for use. Outsourcing will allow your company to focus and redirect its resources; most often people resources, from non-core activities to profit gaining activities..
David Turner is Vice President at BusinessPlans, Inc. (BPI)- myCafeteriaPlan, which has been a third party administrator for over 14 years for pre-tax section 125 cafeteria FSA plans, section 105 healthcare reimbursement arrangements (HRA), and section 132 qualified transportation (Transit) plans. Visit www.myCafeteriaPlan.com or call 800.865.6543 for more information.7 Wonders of the Offshore World
Many people assume that the offshore world is accessible only to the super rich looking to increase their wealth, or to large multi national corporations looking to escape taxation. But the truth of the matter is that the offshore world is accessible to everyone!Placing money or assets offshore is a legal and often worthwhile undertaking and it is something that anyone living in, for example, the UK, Europe, Canada, Australia or America can do easily and with potentially great effect.Before I continue it is imperative to point out that the suitability of entering the offshore world for saving, banking, asset protection or any other reason can only be determined on a case by case basis. While ?going offshore' might be the most effective way for one person to operate, it might be totally unsuitable for the next person because of their personal circumstances. It is essential that anyone considering going offshore seeks the advice of a professional financial adviser. This article does not...
7 Wonders of the Offshore World
Tax help > 7 Wonders of the Offshore World
Making Your Business Legal
It's important that your business be on the "up-and-up"right from the start. Taking care of the legal issuesassociated with starting a new business will keep you out of hot water in the future. Here are the first steps you need to take:1. Register Your Business NameYour business name must be registered if it is somethingother than your full legal name. This is a way of informingthe public that you will be doing business as (DBA) anassumed, or "fictitious" name.
Generally, a search is done to ensure your name is not already in use, and anapplication is submitted to make it official. Some statesrequire a notice be published in the local newspaper. Thedetails of registering varies from state to state, so checkwith your state office or county clerk for specifics.2. License Your BusinessLicensing of your business depends on the type of businessyou plan to start. Licensing occurs on the state and/orlocal level.
Federal licensing is only necessary forbusinesses who engage in specific,...
Making Your Business Legal
Tax help > Making Your Business Legal
Your mid-year checkup: Get savvy about lowering your taxes
Are you still owing the IRS in taxes every year?Not a great situation to be in, is it? But there is still hope for this year. You have almost six months, in some cases a little longer, to make certain you owe less tax, and possibly no tax, next year.Here's a blueprint that outlines the keys to lowering your taxes and remaining audit proof. Follow these keys and you're guaranteed to lower your taxes by hundreds, if not thousands, of dollars!Key #1: Consider a Home Office Deduction Many taxpayers have avoided the home office deduction because it has been regarded as a red flag for an audit. If you legitimately qualify for the deduction, however, there should be no problem.You are entitled to write off expenses - such as rent, utilities, insurance, and housekeeping - associated with the portion of your home where you exclusively conduct business. A middle-class taxpayer who uses a home office and pays $1,200 a month for a two-bedroom apartment could easily save $1,200 in taxes a year. ...
Your mid-year checkup: Get savvy about lowering your taxes
Tax help > Your mid-year checkup: Get savvy about lowering your taxes
Gowealthy.com Leading Website for Dubai Freehold Properties Becomes the Online Media Partner for Smart International Property Expos 2006 to be Held in Singapore
Dubai, UAE, (ContentDesk) February 1, 2006 -- Gowealthy.com with more than 300,000 visitors a month to its credit, becomes the online media partner for Smart International Property Expos 2006 to be held in Singapore. The SMART International Property Expo attracts quality investors with a genuinely strong interest in the overseas property market. Smart expo promises high traffic, and brings you the right traffic. The exchange between Smart exhibitors and Smart visitors brings more opportunity for quality sales leads and closing contracts. Smart Singapore will be held at Suntec Singapore International Convention & Exhibition Centre on 6th and 7th May, 2006.
www.gowealthy.com is the leading website for Dubai properties and occupies the top ranking positions in all major search engines. The site features latest property offerings from various developers in Dubai and provides with up to date information in the form of Dubai real estate news, and free listing area for international...
Gowealthy.com Leading Website for Dubai Freehold Properties Becomes the Online Media Partner for Smart International Property Expos 2006 to be Held in Singapore
Tax help > Gowealthy.com Leading Website for Dubai Freehold Properties Becomes the Online Media Partner for Smart International Property Expos 2006 to be Held in Singapore
Lorman Education Services Presents "A Protecting Wisconsin Physician Client Assets After Ferdon Teleconference" on September 29, 2005
(ContentDesk) September 16, 2005 -- Asset Protection Planning is the process of protecting a client's assets from future creditor claims. In our litigious society, every business owner, professional and high net worth individual is at risk. Assets can be taken by creditors, judgments and divorce. The key to successful wealth preservation is advance planning. At this seminar you will learn, from a nationally recognized speaker, several methods of wealth preservation, the advantages and risks involved, and the emerging trends in his growing field.
Special emphasis will be placed on the use of offshore asset protection trusts, including a discussion of tax consequences and related issues surrounding such planning techniques. Howard D. Rosen, Esq. is an attorney and certified public accountant practicing law in Miami, Florida, as a shareholder (partner) in the firm of Donlevy-Rosen & Rosen, P.A. Mr.
Rosen is an adjunct professor and lecturer of law at the University of Miami...
Lorman Education Services Presents "A Protecting Wisconsin Physician Client Assets After Ferdon Teleconference" on September 29, 2005
Tax help > Lorman Education Services Presents "A Protecting Wisconsin Physician Client Assets After Ferdon Teleconference" on September 29, 2005
Cafeteria Plan Employee Benefit Should be Another Feather in Your Benefit Program's Cap Tax help
Cafeteria Plan Employee Benefit Should be Another Feather in Your Benefit Program's Cap
Cafeteria Plan Employee Benefit Should be Another Feather in Your Benefit Program's Cap
Cafeteria Plan Employee Benefit Should be Another Feather in Your Benefit Program's Cap
Cafeteria Plan Employee Benefit Should be Another Feather in Your Benefit Program's Cap Tax help
Driver Education - Auto Insurance Tips
From the beginning, starting with your first contact with whatever is connected to driving and cars, you must have heard of the utmost important aspect:the car insurance. To a certain extent the driver education must deal with this aspect which is vital for the driver and the car in itself.
There are many companies specialized in this field but you should know that there are many of them which make certain advantageous offers such as discounts for the good grades As and Bs, yet...
Tax help > Driver Education - Auto Insurance Tips
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