Education Reimbursement Accounts
One of the most generous benefits a company can offer is an Education Reimbursement Account. This benefit program is a contractual agreement between employer and employee that outlines specific terms under which the employer may pay for the employee’s continued education.
This benefit program varies greatly from company to company. Those who choose to participate in this program pay for out-of-pocket costs for the courses they enroll in. When the course is over, the employee may be reimbursed in full or part for tuition expenses. Depending on the plan design, conditions may apply.
Premium Only Plans
Premium Only Plans (POPs) are the building blocks of the Section 125 plan. These plans allow employees to pay their health insurance premiums with tax-free dollars and save up to 40 percent on federal income
This plan is a great solution for companies who want to offer tax benefits to eligible employees but who do not want to invest into a full pre-tax benefit plan.
Examples of premiums that can be deducted from employees’ paychecks on a pre-tax basis include but are not limited to health insurance, dental insurance, vision insurance, disability insurance, cancer insurance and many more.
Simple Cafeteria Plans
Under the Healthcare Reform Act, eligible small employers are now able to establish a new type of cafeteria plan known as the Simple Cafeteria Plan. Compliance with cafeteria plan nondiscrimination rules have been problematic for many small employers and as a result, this new plan can now make cafeteria plans a more practical option. Simple Cafeteria Plans eliminate problems by providing safe-harbor plan designs that ensure compliance with nondiscrimination rules.
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