New Legal Way to Provide Employee Assistance for Individually Owned Premiums
Summary
Adel, IA, June 20, 2014 --( Business owners can help employees with individual insurance costs knowing that this taxable benefit plan is exempt from the Affordable Care Act and other applicable guidance, which no longer allows pre-tax premiums.“Officials have made it very clear that an employee’s individual premiums cannot be paid by an employer on a tax-free basis either by reimbursement to the employee or paid directly to the carrier, so BASE recognized a need for an after-tax benefit option eliminating the compliance issues associated with pre-tax benefit plans,” said Adam Harrington, BASE Vice President of Sales and Customer Service.BASE provides employers with all of the tracking, adjudication and payroll information needed to carry out this incentive program.Adel, IA, June 20, 2014 --( PR.com )-- BASE recently introduced the Choice Incentive Plan as a new benefit option, which has been very well received by employers.Employers establish what is considered to be eligible through the plan with no minimum employer contributions required, whether it is health insurance only, health and supplemental coverage, or health, supplemental, and life insurance coverage.“Officials have made it very clear that an employee’s individual premiums cannot be paid by an employer on a tax-free basis either by reimbursement to the employee or paid directly to the carrier, so BASE recognized a need for an after-tax benefit option eliminating the compliance issues associated with pre-tax benefit plans,” said Adam Harrington, BASE Vice President of Sales and Customer Service.This type of plan is more cost effective than giving all employees a pay increase, since only employees who purchase their own individual insurance coverage receive a monthly payment amount.