It is a tax reduction plan, not an insurance plan. The Premium Only Plan allows employees to pay for their portion of benefit plan costs on a before tax basis.
Group healthcare, dental care, vision, group term life under $50,000.
On average, the employee savings will be approximately 30% and employer savings 7.65% of the employee contributions for benefits.
No. The tax savings are created by the employee’s contributions for insurance. As long as the plan does not favor key executives and owners, there is no minimum number of employees necessary in order to have a plan.
Any employee enrolled in one of the group benefits listed above and paying for a portion of their coverage through their payroll.
Generally, employers will payroll deduct an employee’s portion of the benefit plan costs right out of his or her paycheck. The benefit cost is deducted AFTER taxes have been taken out of the employee’s paycheck. What this means is that LESS taxes are taken out of the employee’s paycheck. Less taxes means MORE MONEY in the employee’s pocket.
In addition, many states require having a Premium Only Plan in place when offering group benefits.
No. It does not matter where or what medical benefits are available to you. It only matters that the employee is paying for some portion of their benefits.
No. Only those employees who have premiums for which they would like to save on taxes should consider participation.
As soon as you decide to begin saving for yourself and your employees.
© 2021 Advanced Benefit Strategies, Inc.
Advanced Benefit Strategies is an Equal Opportunity Employer.