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Utah State Exchange AvenueH Offers Small Business Options for their Section 125 POP Documents

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Utah State Exchange AvenueH Offers Small Business Options for their Section 125 POP Documents

Utah has a state run exchange that has been running for years prior to the launch of the “Affordable Care Act”.  The state run exchange named Avenue H is exclusively for small business with 2-50 employees.  Despite the delays in the federal run exchanges to offer multiple carriers on a defined contribution, Avenue H has the capability and has been perfecting their model in a working environment for several years.

Despite all the benefits of a multi-vendor offering for small employers the state run exchange is also the ONLY place Utah employers can receive the federal tax credit available to employers who sponsor group coverage with less than 25 employees and can equal as much as 50% as a FEDERAL TAX CREDIT.

The decision for many employers in what offering fits their budget, industry, and company culture has been and will continue to be a difficult decision for 2014.  However the ability to offer multiple vendors, TAX CREDITS, and the ability for employees to pay for their premiums on a tax-free basis through the use of IRS Section 125 plan makes the offering very appealing.  Many states including Utah require employers to offer employees the ability to pay for their premiums tax-free through the use of the Section 125 Premium Only Plan.  To make this process easy and convenient Avenue H has a direct link to taxfreepremiums.com to allow sponsoring employers to enroll and create a Section 125 POP plan in less than 5 minutes and for only $99 per year.

It has been thought that many small employers might drop group coverage opting to have employees move to the individual market however Utah employers have seen a HUGE demand for employer sponsored plans to attract and keep the talent in their local market.  The tax advantages of Section 125 tax-free deductions along with the professional advice and assistance of a local broker/consultant has proved to be a preferred option for competitive employers.

 

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