Guest hangmeup Posted November 19, 2014 Share Posted November 19, 2014 Hello, We are a small S-corp that has paid 100% of all employee premiums up until this point. We are now looking to have the employees contribute a small portion and have it be pre-tax for them. Our insurance is just your standard higher-deductible PPO plan. What paperwork is needed? Is this something we can do on our own, or do we need to hire a firm to administer this? I'm hoping that I can just create a corporate resolution to adopt a POP and have each employee sign a deduction authorization. Thanks in advance for any advice you can give! Link to comment Share on other sites More sharing options...
lvena Posted November 19, 2014 Share Posted November 19, 2014 Relatively simple, with the caution that S Corp owners/hce have some restrictions. Must set-up a Plan Document and Summary Plan Descriptions (SPD). Give each employee option to participate with salary reduction. You may want to obtain some kind of outside help, at least at first, until you get your arms around the various issues. good luck. Link to comment Share on other sites More sharing options...
GMK Posted November 19, 2014 Share Posted November 19, 2014 I'd suggest hiring a firm to provide the documents. A POP doesn't cost much, and then you know the paperwork is right. After that, it's easy. Just have to make sure that payroll keeps the pre-tax part separate from the after-tax part of employees' pay. If possible, an automatic enrollment is easier (employees become participants whenever they are eligible for the health coverage). In this mode, employees must be offered the opportunity to waive participation. Bill Presson 1 Link to comment Share on other sites More sharing options...
QDROphile Posted November 19, 2014 Share Posted November 19, 2014 Where does a summary plan description come into the picture for a premium-only section 125 plan? An SPD is required for the health plan, but that is presumend to be on track. Link to comment Share on other sites More sharing options...
Clarifying Health Posted January 8, 2015 Share Posted January 8, 2015 Here is a helpful overview of how Section 125 plans work, that I think might help: http://www.zanebenefits.com/blog/How-Section-125-Cafeteria-Plans-Work Link to comment Share on other sites More sharing options...
GBurns Posted January 10, 2015 Share Posted January 10, 2015 Clarifying Health. I suggest that you get some competent legal advice regarding these Zane items that you often link. Chaz 1 George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction) Link to comment Share on other sites More sharing options...
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