Salt Lake City, UT (PRWEB) March 18, 2012
Companies across the nation are continually shifting the burden of increasing health premiums to their employees. As such, employees and employers need to be taking advantage of the tax savings that come with deducting these premiums for payroll pre-tax. This can save both the employer and employee substantial amounts in tax savings.
To be able to deduct the premiums pre-tax a section 125 plan must be established and updated as laws are changed. There are 2 types of section 125 plans that are most common. A full service section 125 cafeteria plan allows the pre-tax deductions of premiums as well as the pre-tax deduction for dependent child care and FSA (Flexible Spending Account) contributions. The second is a section 125 premium only plan (POP), which allows for pre-tax deductions of premiums and HSA (Health Savings Accounts) contributions.
To set up a section 125 plan, a company may have many options including their current health carrier, CPA, ERISA attorney, and etc. However, Taxfreepremiums has created an online solution that creates section 125 premium only plan document for companies wishing to stay in compliance and not have to pay additional amounts when they
make a simple change to their benefits.
“We believe that our team has created a product that simplifies the process for companies wanting to capture pre-tax savings as outlined by IRS Section 125. Our product is not only easy to setup, it provides piece of mind that comes with knowing you are always in compliance,” said My Compliance Solution President Ryan Bingham.
As a technology driven industry leader, Taxfreepremiums.com helps employers, insurance advisers, CPSa, attorneys, and payroll providers get in and stay in compliance. They are the industry leader in Section 125 POP plan documents and provide a compliance package through an annual subscription service. This service provides a virtual toolkit with all required documents and a step by step process designed to get an employer in compliance with IRS and DOL requirements. The service provides automated compliance updates, archived documents, and now, non-discrimination testing software at a low annual fee. Learn more at http://www.taxfreepremiums.com