Section 125 Plan Compliance-You Need A Professional
When every penny counts for your business, it’s tempting to think you can save a few bucks by doing everything yourself. By letting www.taxfreepremiums.com handle your compliance housekeeping you can reap enormous dividends!
The laws covering Cafeteria Plans are pretty complex, and even the simplest IRS rundown takes a couple of tries to understand. Does anyone on your staff really have time to squeeze a bunch of research onto their plate, along with all of their other job duties? Even if they do, could that time be used doing something more productive?
Let a Pro Handle It
Using a professional service, such as www.taxfreepremiums.com buys you the knowledge of an experienced team with solid experience regarding Cafeteria Plans and ERISA provisions. They work with the Section 125 Premium Only Plan every day. They know the IRS guidelines. They do this stuff so you don’t have to spend precious time researching the details. More importantly, they understand what works and how to make your life easier.
The IRS recently issued a directive emphasizing the need for the Section 125 Plan documents to be up to date. Too often companies file a plan document away in a file cabinet never to be seen again. If that’s you, find it and look at it. Make sure that the employees participating in the plan are the employees described as eligible in the Plan Document. Make sure the benefits you’re offering are listed in the document or have language that allows your document to follow the eligibility of your benefit plans. Make sure everything in that document matches the day-to-day reality of your plan. If it doesn’t, it’s time for an update, and fast. If you violate the provisions of your own plan document and get caught by the IRS, your entire Section 125 Premium Only Plan could be rendered taxable. That would be financially disastrous for both your company and your employees.
Non-discrimination testing is another area in which the IRS takes great interest. If your plan offers most of its benefits to your company’s top executives or saves the best benefits for them, your plan discriminates. This violates the IRS’s non-discrimination rules, and you’ll have to pay taxes on the benefits the execs could have taken, even if they didn’t. Every December, you check for this by “testing” your plan for non-discrimination under the IRS’ rules– and that could mean taxable benefits for highly compensated or key employees. www.taxfreepremiums.com offers a testing module so you remain compliant.
This is a lot to think about.
If you’re starting to get worried at this point, relax. Let the professionals at www.taxfreepremiums.com help you get your plan in shape and keep it that way. For a low annual fee of $99, you’ll have access to expert advice, up-to-the-minute compliance updates, and all the resources you need to manage your plan.