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Monthly Archives: May 2014

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 TaxFreePremiums does. Usually the cost of generating the appropriate documents for your cafeteria plan will cost at a minimum $250 and its not unheard of to be charged thousands of dollars. For $99 each year TaxFreePremiums will generate the initial POP document and keep it up to date with the newest legislature to ensure your compliance, and with the Affordable Care Act being enacted and changes to the Defense of Marriage Act being made there is always a chance that your documents may need to be amended. [read more...]

May 30th, 2014 • 0 Comments

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 could be some of the jargon that make you feel a little uneasy. What are the key differences between Section 125 Cafeteria Plans and tax exclusion? [read more...]

May 22nd, 2014 • 0 Comments

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. The Department of Labor has indicated that it will be making Section 125 Plans a focus over the next few years. [read more...]

May 13th, 2014 • 0 Comments

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: [read more...]

May 6th, 2014 • 0 Comments

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” [read more...]

May 1st, 2014 • 0 Comments