MORE INFORMATION ABOUT SECTION 105
What is a Section 105 Medical Reimbursement Plan?
What kind of expenses are covered?
What is a Section 105 Medical
Reimbursement Plan?
We will illustrate to the self-employed the potential tax-saving
advantages of creating a Section 105 employer sponsored benefit plan for your
business. Simply put, a Section 105 plan allows most medically related
expenses, including health insurance premiums, to become tax deductible!
It should be noted at this time that, the processes used
by SSG in establishing and administrating your Section 105 plan are recognized
by the IRS as legitimate, as are any tax savings that may result through your
participation in the plan, provided that you follow a few simple rules and
documentation procedures. So, let's move ahead and explore some specifics of a
SSG administered Section 105 benefit plan.
Plan Administration
In order for a Section 105 plan to be properly executed, there are certain
responsibilities that must be carried out by the employer, the employees, and
the third party administrator (SSG). The purpose of this section is to
explain those commitments in a clear and orderly fashion. Completing the
following actions promptly, and, when necessary, regularly, should permit the
administrator of your plan to proceed within the standards acceptable to the
IRS.
How a Section 105 Plan is Established
Section 105 of the federal tax code* permits the creation of employer-sponsored
employee welfare benefit programs for the specific purpose of allowing
employers to deduct from their taxes the cost of non-insured medical expenses
and health insurance premiums. For the IRS to accept your plan as
legitimate, there are several rules that should be followed. This is
where our experience and expertise is of most value to you. By completing
our simple application, we will set up your Plan completely so that it follows
all IRS Guidelines.
Service Provided to Clients
The following services are provided to all
Clients who enroll and remain active with the Medical Reimbursement Plan.
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Confidential analysis to determine eligibility and estimated net
savings
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Specimen Medical Reimbursement Plan Document
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Enrollment Data
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Specimen Employment Contract
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Log of Employee Work Hours (if necessary)
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Letter to Insurance Carrier
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Quarterly Questionnaire
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Quarterly Summary of Benefit
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Annual Report of Medical Benefits
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Transmittal letter to Client tax return Accountant
What Kind of Expenses are Covered?
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