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With over 76 years of experience, The Jordan Insurance Group is an industry leader in Life Insurance strategies and Employee Benefits. We strive for excellence through our due diligence in selecting products to satisfy our clients’ needs with proven benefit designs and tax strategies. Our Team utilizes a diversified multi-level approach in preserving, protecting and growing wealth for our business and individual clients.
Purchasing Direct Or Through TASC
Premium only plans are a great way to pad the pockets of both employers and employees. If you're an employer looking to give your workers a great benefit, a premium only plan (or POP) is a smart way to go. Once you decide on this course of action, however, the question becomes: Should you purchase the POP directly or go through TASC? Enabled under Section 125 of the tax code, cafeteria plans -- which include flexible spending accounts as well as premium only plans -- allow employees to use pre-tax dollars when purchasing their health insurance. This works out well for employees, who end up saving between 20 and 40 percent of their payroll deductions. Employers benefit too, pocketing 7.65 percent of every dollar they put into a POP. If you feel confident in your abilities to set up and administer your plan, you can sign up through a cooperating insurance company by filling out an enrollment form and choosing a start date. Your insurance provider will then send you the paperwork necessary for your and your employees, as well as pertinent updates. While POPs are relatively straightforward to set up and administer, some employers might have a harder time with compliance than others. POPs aren't overly strict, but you do have to follow certain rules for setting up the plan and offering open enrollment, and must then stick to decisions made during enrollment. While exceptions exist for when changes can be made and how, not all employers are interested in managing the details. If you would rather have a third party take care of such administrative burdens for you, you might be a candidate for TASC. They will help you stay up to date on compliance requirements and to implement changes in the law or your plan. They can even help you purchase and set up the plan in the first place, so talk to them before taking action. Source: http://www.cpa125.com/Premium%20Only%20Plan.htm
William Jordan
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