Tag: Section 125 Cafeteria Plan

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ERISA & SPD Wrap or Summary Plan Description Wrap Documents

Recently we joined forces with a company to assist in additional forms of compliance.  These compliance issues fall directly in line with the rumors of the ERISA DOL Audits.  HR Service Inc and ERISA Solutions are those companies.  The professional atmosphere, experienced employees, and customer service-oriented environment is appealing; yet the powerful and user-friendly tools/documents…
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In September the IRS issued two notices regarding the Affordable Care Act.  Notice 2014-49 describes a proposed approach for applying the look-back measurement method used to determine full-time employee status for purposes of IRS Code § 4980H in situations when the measurement period applying to an employee changes. This change may occur because the employee…
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125 POP Document Changes Summary

As explained below, the laws governing Section 125 Premium Only Plans recently changed. We have updated your plan documents to reflect these changes. Please log on to your account at https://www.taxfreepremiums.com/main/login and download the newly updated documents to remain in compliance. The new IRS Notice 1455 creates two new Section 125 mid-year qualifying events designed…
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Why offer Voluntary Benefits?

The latest trend in employee benefit packages are Voluntary Benefits.  Research shows this isn’t just a fad or sales tactic but something your employees are actually searching for and need help through the decision process. Voluntary Benefits are just that….voluntary.  As an employer you offer to make deductions on a pre-tax basis through your Section…
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Yes, A Written Plan Document for Section 125 POP is Required.

Most people know that premiums for health insurance are not taxable.  Well, that is if you have a Section 125 POP Plan.  The plan has to be in writing and there are other requirements that have to happen in order to be compliant. http://youtu.be/fzST7-rDFjQ     Watch this quick video to learn more about IRS…
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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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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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