Premium Only Plans

Flexible benefits provide an employer the opportunity to be competitive in today’s benefits environment. Premium Only Flex Plans are a valuable benefit providing a tax savings for the employer and employees at little or no additional cost. The IRS requires compliance with IRC Section 125 to allow pretaxing of employees contributions to employer sponsored benefit premiums. Participation in the Associated Employers Group Benefit Plan and Trust does not automatically allow you to pretax employees contribution to premiums. The IRS requires a specific plan document to allow this. Let AE assist you in this process.

EMPLOYER ADVANTAGES

• Containing benefit costs
• Reducing payroll taxes, e.g., FICA and FUTA
• Attracting and retaining employees

EMPLOYEE ADVANTAGES

• Setting aside pre-tax dollars to pay for premiums
• Reducing federal, state and FICA taxes resulting in greater take home pay

FEES
Premium Only Plan $400.00 one time fee (no monthly or yearly fees)

This one-time fee includes preparation of Plan Document, Summary Plan Descriptions, Enrollment Forms, employer and employee meetings and legislative updates. Additional consultation will go towards AE membership hours.

Please contact Heidi Hall at 406.248.6178 or heidi@aehr.org for more information

This service does not constitute legal or tax advice. It is intended to provide general information about Premium Only Plans. Consult your tax advisor or legal representative for specific information on tax or legal questions.