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employee insurance contribution paperwork for pre-tax status


Guest hangmeup

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Guest hangmeup

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!

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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.

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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.

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  • 1 month later...

Clarifying Health. I suggest that you get some competent legal advice regarding these Zane items that you often link.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

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