TaxFreePremiums your Section 125 Premium Only Plan (POP) Provider
Every penny counts when you’re running a business, so why would you want to pay your attorney to create a Section 125 POP Plan document that you can generate in just a few minutes?
Section 125 Plans are complex. Even the simplest IRS rundown takes multiple tries and is difficult to digest, costing you and your staff valuable time. By signing up with TaxFreePremiums, you’re assisted with the process, which not only saves time, but buys you the knowledge and experience of compliance specialists.
That’s what you get when you partner with www.taxfreepremiums.com to create your next Section 125 Plan document.
Let a Pro Handle It
Using a proven service, like TaxFreePremiums gets you a complete solution to your Section 125 questions: including easy-to-complete forms that allow you to generate your 125 Plan documents, your Plan SPD, annual non-discrimination testing, auto-updates, and a checklist to make sure you’re in compliance.
You also receive the help of professionals experienced in Cafeteria Plans and ERISA provisions if you any help or run into questions. They know the IRS guidelines. They work with the Section 125 Premium Only Plan every day so you don’t have to spend precious time researching the details. More importantly they understand what works, and that makes your life easier.
Why Stay Up-to-Date?
The IRS recently issued a directive emphasizing the need for Section 125 Plan documents to be up to date. This entails:
- Employees participating in the plan are the employees described as eligible in the Premium Only Plan document.
- Listing your offered benefits in the document, or having language that allows your Section 125 Plan document to follow eligibility of your benefit plans.
- Making sure everything in that document matches the day-to-day reality of your plan.
If your current Section 125 Plan doesn’t meet this criteria, 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. You could also be fined back to the first occurrence you were out of compliance. That would be financially disastrous for both your company and your employees.
But that’s not all. The IRS also takes great interest in Non-discrimination testing. If your Premium Only 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 executives could have taken, even if they didn’t.
That’s why it’s recommended you review your plan every December to see if you meet the IRS’s non-discrimination definition. This is done by “testing” your Section 125 or Premium Only Plan, which could reveal taxable benefits for highly compensated, or key employees. This is yet another way TaxFreePremiums is able to help. Non-discrimination testing is available via a simple testing module, always up-to-date, and included at no additional charge.
This is a lot to Think About …
If you’re starting to get worried at this point, relax. Let the HR professionals at TaxFreePremiums help you get your plan in shape and keep it that way. For a low annual fee of $89, you’ll have access to expert advice, up-to-the-minute compliance updates, and all the resources you need to manage your plan.
So go ahead and build your revenue while www.taxfreepremiums.com gives you compliance peace of mind. After all, your staff has enough on their plates. Do you really want them to shift their focus to researching Section 125 Plans?