Practice owners and AVMA members enrolled in the AVMA Trust Association Health Plan are invited to view a recording of a recent exclusive event about the legal requirements – and benefits – of allowing employees to make pre-tax deductions for health insurance.
The IRS, under IRC section 125, requires employers to have a Premium Only Plan document in place in order to allow employees enrolled in the health plan to make pre-tax deductions for the coverage.
By putting a Premium Only Plan in place, you not only will be in compliance with legal requirements, but you will recognize the following benefits for your practice as well as your employees:
- Employees save money by having their premiums deducted on a pre-tax basis
- Employers save nearly 8% in payroll taxes for every dollar their employees deduct
- Managers save on the cost of administration
- Employees can enroll in additional voluntary benefits with their savings
- Tax savings will help defray the cost of insurance rate increases