Employer Strategies and Solutions to Substantially Reduce:
the high cost of Health Insurance;
the cost for Out-of-Pocket Medical Expenses;
the cost for Dependent Day Care Expenses;
the cost for Parking and Transit Expenses;
cost of Self-Employed Healthcare Expenses;
Employer Matching Payroll Taxes by 8%;
Employee Income Taxes by 30%.
Today innovative solutions are available to help businesses address escalating medical costs. The tax-saving features of these consumer-driven plans can provide substantial savings for you and your employees. Ament Benefits, Inc. can help you get the tools you need to help administer:
Health Savings Accounts
Flexible Spending Accounts
Health Reimbursement Arrangements
Additionally, we can help procure the tools to administer Flexible Spending Accounts and Health Reimbursement Arrangements for businesses of any size.
Flexible Spending Account (FSA) – Also known as a Flex 125 or Cafeteria Plan, an FSA allows employees to contribute a designated amount from each paycheck into a personal account. Funds in the account are used to reimburse employees for health, dependent care and other qualified expenses. Because funds are deducted pre-tax, the employee’s take-home pay and buying power are increased.
Health Reimbursement Arrangement (HRA) – An HRA is a medical reimbursement plan that is funded solely by the employer to reimburse employees for their qualified medical expenses. The actual amount of the reimbursement is tax-deductible for the employer and a tax-free benefit for the employee.
Health Savings Account (HSA) – A HSA is a tax-deductible savings account that’s used in conjunction with an HSA-qualified high deductible health insurance plan (HDHP). The money deposited in an HSA can only be used to pay for qualified health care costs. While in the account, funds can earn interest tax-free, HSA regulations allow you to legally reduce federal income tax by depositing pre-tax money into a health savings account, as long as you’re covered by an HSA-qualified HDHP. Just like IRAs, HSA contributions can be made until April 15 of the following year.
The IRS Code has numerous provisions designed to help employers provide essential benefits to their employees tax-free. This saves the employee approximately 30% in income taxes on expenses they're already paying for, and because the employees have reduced their taxable income, the employer realizes a reduced matching payroll tax liability of approximately 8%. Everybody saves money.
To take advantage of these tax deductions the IRS requires that the employer have a written plan document and the Department of Labor and ERISA law require that every employee receive a summary plan description (SPD) explaining the new benefit in easy to understand language.
This site is dedicated to providing employers with the tools they need to successfully establish these written plans with SPDs at the lowest cost possible. Please don't hesitate to call us if you have questions, we will be happy to assist you. Thank you.
Ament Benefits, Inc. 2006 All rights reserved. Ament Benefits, Inc., 7111 W. 151st Street, #129, Overland Park, KS 66223