A little known fact of Section 125-B. The triggering Factors that can lead to this further qualification are 2 different factors.
When qualified the member receives an insurance pool of money to purchase these additional products with no out of pocket expense to their paychecks.
The employer saves approximately 3.1% on FICA taxes from the pass through effect of qualifications.
This plan works for employees with incomes from $19,000 and up depending on filing status of the member. A qualified member saves the employer every month based on filing status employee only; $22.05 per month employee and children $34.65, employee and spouse $34.65, and 2 parent families $47.25 per month.
Examples: A 40 person group that qualifies, the employer saves approximately $18,000 a year in employment taxes through FICA reallocation, approximately 3.1% savings.
Members receive a guaranteed issue Life Insurance coverage that builds a cash pool of money. They then have a remainder of an Insurance pool of money to purchase supplements such as Critical Illness, Short-Term Disability, Accident, Vision, and Dental Plans.
They cannot use this pool to increase their paychecks.
There are more points to cover in their qualification and we would be glad to visit with you in person to cover these. Numbers tell the story. We like to show you the numbers.
Employers save a significant amount of money on payroll taxes, with average saving of over $400 per employee annually. This plan provides enrolled employees with allowances for deductibles, co-insurance, co-pays, dependent care and other out-of-pocket expenses. The tax saving from a benefit bank used to purchase supplemental insurance that covers these out-of-pocket expenses, replaces lost wages and pays other expenses not covered by major medical pans. This plan has proven popular with employees, with an average participation rate of over 90%.