No Net Cost
The employer sponsors a 125 "cafeteria" plan. Employee elects to contribute a premium through the Section 125 plan for a self-funded Health and Wellness Plan
If we had a way to save you $500 to $800 per year per employee on your payroll taxes, would you be interested?...
The employee's income subject to payroll taxes is reduced by participation in the wellness plan through a Section 125 "Cafetertia" Plan. This also reduces the matching FICA tax obligations of the employer. Participating employees also purchase a post tax, self-funded, limited benefit indemnity medical plan. You save money and there is no reduction in an employee's take-home income. In addition your employees are provided with additional insurance benefits which can include accident, critical illness, cancer, hospital indemnity, and cash value life at no net cost.
The Program is valuable to employers as they continue to struggle with balancing compliance, meaningful benefits, rising premium increases, and employee satisfaction with their benefits.
Employers can save money necessary to grow their business. No changes are required in other benefit or health plans, advisors, or payroll services.
Pre and Post Tax Deductions
Each pay cycle, premiums are paid post tax by each participating employee for a limited benefit medical indemnity plan. Participating employees wages / salary are reduced to fund a wellness program offered through a Section 125 cafeteria plan. This reduction is deemed to be on a pre-tax basis and excluded from taxable income, per IRS Code Section 125 Rules.