BeneFlex Wellness
Tax Savings for Employers and Healthcare Savings for Employees
The Affordable Care Act, through a qualified wellness program using Section 125 code, can create a tax savings for employers, and employees.
Participation in the wellness program allows for a salary reduction through the Section 125 that creates the tax savings and is then paid back into the employees take home pay as a claim payment from the wellness program. This creates a delta of Flex credits the employee can now use to shore up their existing Health coverage with supplemental coverage's such as accident, critical illness, cancer, short term disability, life, etc.. This occurs with no out of pocket cost to the employer or employee and the employees' take home pay does not go down! (The average benefit flex dollars is about $75 per month for additional coverage for employees to choose from the various supplemental insurance products!)
The employer side will see a little over $200 per employee per year of tax savings. The employer tax saving's are separate from the employee flex credits they use to secure additional coverage.
There are qualifications and compliance issues to be met, but we do the back office components for you to keep everyone compliant.. A Group of 100 employees could see $20,000 in savings while adding the benefits of the BeneFlex Wellness Program.
In Summary the benefits of the BeneFlex Wellness Program are:
Participation in the wellness program allows for a salary reduction through the Section 125 that creates the tax savings and is then paid back into the employees take home pay as a claim payment from the wellness program. This creates a delta of Flex credits the employee can now use to shore up their existing Health coverage with supplemental coverage's such as accident, critical illness, cancer, short term disability, life, etc.. This occurs with no out of pocket cost to the employer or employee and the employees' take home pay does not go down! (The average benefit flex dollars is about $75 per month for additional coverage for employees to choose from the various supplemental insurance products!)
The employer side will see a little over $200 per employee per year of tax savings. The employer tax saving's are separate from the employee flex credits they use to secure additional coverage.
There are qualifications and compliance issues to be met, but we do the back office components for you to keep everyone compliant.. A Group of 100 employees could see $20,000 in savings while adding the benefits of the BeneFlex Wellness Program.
In Summary the benefits of the BeneFlex Wellness Program are:
- Tax savings for the employer.
- Expanded benefit offering for your employees at no out of pocket cost to the employer or employee.
- Reduction in employee turnover.
- Increased morale in your employees.
- Healthier Employees.
Essential Strategies