Similar to sole proprietorships, partnerships also face strict rules when setting up a Section 105 plan. To be eligible for the full tax-free benefits of the plan, each partner must employ a spouse in a legitimate work arrangement on at least a part-time basis. The partners may then offer Section … [Read more...] about How Does a Section 105 Plan Work With A Partnership?
The key to setting up a Section 105 plan that is in compliance and enables the business to obtain the full tax-free benefits to its owners and employees is to engage the services of a qualified plan administrator and a certified public accountant (CPA). These individuals will work with the business … [Read more...] about Section 105 Plan Administrators: How to find the Right One
Non-discrimination testing applies to self-insured medical reimbursement plans that allow employees to pay their premiums on a pre-tax basis. Common plans that are required to undergo non-discrimination testing include HRA’s, self-funded medical plans, and medical expense reimbursement plans … [Read more...] about Section 105 Plan Compliance: What You Need to Know [Infographic]
Section 105 plans are a great option to offer for small businesses. They allow the company to provide a group insurance plan, even when the company is very small. This is tremendous for employees who might otherwise seek employment with larger companies who are able to offer a group health insurance … [Read more...] about Pros & Cons of Section 105 Plans:
Section 105 plans require specific documents to be in compliance with IRS and Labor Department regulations. Most Section 105 plans are self-funded (or self insured), but some companies choose to enact reimbursement plans such as Health Reimbursement Arrangements (HRA’s) or Healthcare Reimbursement … [Read more...] about Section 105 Plan Document: Understanding the Components [Infographic]
A Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) is a company funded health reimbursement plan offered by small businesses to their employees. It is advantageous to small businesses that want to offer a formal benefit to their employees and realize the benefits of a tax-free … [Read more...] about What is a QSEHRA Plan and How Does it Work?