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Non-Discrimination Testing in Section 125 POP Plans

With some help, setting up and keeping a Section 125 plan can be quite simple and trouble-free. The business need only comply with a number of documentary rules, and it can easily be done with the help of well-informed service providers who can offer packaged POP Plan documents. An important requirement that needs to be…
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Automatic Document Solution

Finally!…a web based document solution that delivers compliance updates automatically for federally mandated Section 125 Cafeteria Plans.

Keeping Compliant

All the benefits that come with offering a Section 125 Cafeteria Plan also come with a level of accountability as well. A large portion of the Section 125 of the IRC deals with the regulation of cafeteria plans, which allow employees to contribute a part of their paycheck to paying for group benefits without paying taxes,…
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Helping Employers Administer a POP Plan

It only costs about $100 per employee each year to set up and administer a Section 125 POP plan according to the National Conference of State Legislatures (NCSL). There are endless companies that are willing to help businesses establish and maintain their POP plan, but few offer the level of service at the price that…
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Main Differences of Tax Exclusion and Section 125

When you consider offering health insurance to your employees you usually will come across terms or phrases that you think you understand but aren’t quite sure. As a business owner you want to know exactly what benefit you are receiving and how it is happening. Section 125 Plans, tax exclusions, and Employer Sponsored Health Insurance…
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States that Encourage Section 125 Plans

NOTE: AS OF 2011, Federal law requires that all businesses deducting employee health premiums pre-tax offers a Section 125 Plan with documentation on file and discrimination testing.

What happens if the IRS finds that my POP plan isn’t compliant?

If the IRS finds that you are not in compliance with Section 125 of the IRC (Internal Revenue Code) you can be in a lot of trouble: A fine of up-to $5,000 or even prison time (1 year if in blatant abuse of ERISA law); If you are found to have misrepresented the facts/made false…
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Do I need to file a 5500?

The question we invariably get from our client is, “Does my client need to file a 5500 as part of their section 125 POP” In short the answer is, not based on the premium only plan unless they are providing any other type of ERISA benefits (e.g. 401(k) benefits). In the distant past an employer…
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What is a Section 125 POP Plan Document?

Well, in the case of an IRS Audit this document allows you to prove to the IRS that you are in compliance with your plan and have the legal ability to pay your benefit premiums pre-tax, effectively giving you and your employees a raise by keeping profits in your pockets instead of paying payroll and…
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Benefit Brokers and Advisors Offer Clients Section 125 Assistance

IRS Section 125 POP plans have been around for years but for many small business owners the documents are filed away from years ago, outdated, or even worse they don’t exist.  With DOL audits on the rise and compliance in full scope under “ACA” more and more clients are asking their benefit brokers and advisors…
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