IRS Chapter 26, Section 125 / Cafeteria Plans
Under this part of IRS law, employers are allowed to fund certain benefit plans for employees and receive a dollar for dollar tax deduction for the amount they contribute. The employee can also receive these benefits as non-taxable income when correctly established. Certain guidelines must be followed in order to qualify for this deduction and non-compliance can result in hefty fines.
Employer Contribution Rules
Equal and fair is the “name of the game”. Most health insurance providers establish their contracts based on the employer contributing at least 50% of the premium amount for their employees. Both the IRS and the insurance companies have important rules governing the equity of benefit plans offered by employers. We can help you stay in compliance.
Contact our Business Insurance Professionals for a Consultation and Individualized Analysis
HSA – Health Savings Account
A health savings account is a tax-advantaged medical savings account available to individuals who are enrolled in a High Deductible Health Plan (HDHP).
HRA – Health Reimbursement Account
An employer-funded plan that reimburses employees for incurred medical expenses that may or may not be covered by the company’s standard insurance plan. Because the employer funds the plan, any distributions are considered tax deductible (to the employer). Reimbursement dollars received by the employee are generally tax free.
FSA – Flexible Spending Account
An FSA allows an employee to set aside a portion of his or her earnings to pay for qualified expenses, most commonly for medical expenses but often for dependent care or other expenses.
Our unique, state-of-the-art, software allows our employer groups' on-line access to a benefits portal that covers all of the employer's benefits. The enrollment process has been simplified so that the employee enters their personal information only once. All employee ...
(Health Insurance Portability & Accountability Act)
April 14, 2004 was the deadline for many businesses to be in compliance with this important federal legislation. This first implementation of HIPAA dealt with Portability. The information you have been hearing about recently deals ...
Life, health, disability, retirement plans... Group Benefits or Employee benefits programs - however your company refers to it, in this economy, your benefits programs can be a major factor in attracting and retaining employees. Jones Insurance has all the options ...
An employee might take paid or unpaid leave, for medical, personal, workers compensation or other reasons. As the employer, you are likely concerned about the following:
When he or she may return to his or her position
How to handle paychecks
How to ...
Health insurance is an important benefit for your employees. Having the right plan can give your business a competitive advantage as part of your overall compensation program.
In fact, many people who would otherwise be qualified to run their own businesses ...
Federal Regulations Effecting Small Businesses HIPAA
Information on Employee Leave of Absence