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New Legal Way to Provide Employee Assistance For Individually Owned Premiums
BASE Choice Incentive Plan is new taxable benefit allowing monthly allowance to employees
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. 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. Plus, the employer can still deduct any and all payments made to each eligible employee as wages. The BASE Choice Incentive Plan is available for employers who would like to help employees reduce the cost of qualifying insurance costs with a defined benefit option.
BASE provides employers with all of the tracking, adjudication and payroll information needed to carry out this incentive program. Employers interested in learning more about how this plan can work for them should call 1-888-386-9680 for more information or visit www.BASEonline.com for additional details.