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Tag: IRS Section 125

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What Products are IRS Section 125 Eligible Expenses?

Often referred to as Cafeteria or IRS Section 125 a Premium Only Plan is an employee benefit plan that allows employees to select desired benefits from their employer’s benefit package, “cafeteria” style.  The real benefit of this type of plan is the tax favored treatment from the IRS if set up in accordance with Section…
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Cafeteria Plans and How Owners Benefit

The fact is that owners can not participate in the company’s Section 125 Cafeteria Plan. Specifically the following owner/employees are not able to participate in a Section 125 Cafeteria Plan: Owners of an S Corporation owning more than 2% and their spouse, parents, children, and grandchildren Partners in a partnership Members of a LLC The…
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Distributing the SPD for your Section 125 Plan – It’s not just about compliance

It’s no secret that the task of government compliance with programs such as IRS Section 125 Plans has most employers jumping through some hoops.  There Department of Labor lists one of many requirements to distribute certain documents such as a Summary Plan Description referred to as SPD.   But through all of this disclosure and required…
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Employers Responsible for Controlling the Cost of Health Care Premiums

Employers Responsible for Controlling the Cost of Health Care Premiums Employers providing health insurance plans for their employees have experienced a series of weighty and daunting changes in the last decade.  With the average price of premiums increasing 113% in the last ten years, the financial burdens of sponsoring health insurance have hit businesses hard. …
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TaxFreePremiums Announce Website, Blog Redesign, Social Networking Launch

TaxFreePremiums launches new social efforts connecting with human resources professionals and small business owners to offer time and cost saving products and resources and additional employee benefits.

Section 125 POP Plans are Required to Perform Non Discrimination Testing Each Year

If you read the IRS regulations on Section 125 POP Plans, also known as cafeteria plans, one thing becomes clear:  the IRS wants all employees to have equal access to the plan and its benefits.  That’s why the regulations include nondiscrimination rules and require regular testing of the plan. Nondiscrimination rules are intended to discourage…
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Employers May See Productivity Backlash as Economy Improves

The American worker has spent the last few years being more productive than ever.  Thanks to the recession and a dismal job market, employers could easily mandate that workers “do more with less” without having to worry about a mass exodus.  It worked for a while, but new research suggests that employees are tired…and looking…
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Employers Without a Section 125 Plan Miss Out on HUGE TAX Benefits

If you still haven’t augmented your company’s benefits program with a Section 125 Premium-Only Plan, you are missing out on substantial cost savings – and so are your employees. A Section 125 POP Plan is often referred to as a cafeteria plan.  You probably already know that a cafeteria plan allows employees to select from…
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Employers Should Revisit Benefits As Jobs Picture Improves

The jobs report released on April 1st was no joke:  employment numbers are the best they’ve been in years.  The U.S. economy added over 200,000 jobs, and the unemployment rate dipped to 8.8 percent.  The rate had been hovering in the 9 to 10 percent range since 2009.  This is one more optimistic sign that…
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Does your Company Deduct Insurance Premium pre-tax?

IRS Rules govern Section 125 POP Plans, also called cafeteria plans.  While these provide your employees access to great benefits, and can provide your company with payroll tax savings, it’s important to stay in compliance with the rules.  Your company must have a written document that includes current language and must be updated regularly as…
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