If you’re looking for an affordable way to provide employees with meaningful benefits while reducing costs, we’ve got you covered. Our goal is to help you and your employees save. Not only are we top-notch benefits plan designers and administrators, we can manage the administration of tax-advantaged HRAs, Special Pay and FICA Alternative Plans including enrollment, recordkeeping and communication.
Health Reimbursement Arrangement (HRA)
Help employees and retirees offset the rising cost of health care by offering an HRA. All reimbursements from the plan are tax free, and all plan earnings are tax free. Plus, employers and employees save 7.65% on FICA taxes.
You control to whom the benefit applies (subject to non-discrimination rules) by determining plan eligibility and contribution formulas. Choose a defined contribution HRA, a retiree HRA or an integrated HRA. We’ll help you manage them all with 24/7 online plan access for you and your employees, and claims submission via mobile app or online portal.
Special Pay Plans
Special Pay Plans are retirement plans funded using unique forms of compensation like unused sick leave and unused vacation pay. Typically housed within a 401(a) or 401(b) retirement plan, these plans allow for tax-deferred payout of accumulated leave and other retirement incentives. With this benefit, employers and employees permanently save up to 7.65% on payroll and FICA taxes.
Special Pay funds are paid out pre-tax, enjoy tax-deferred investment growth, and do not incur federal, state or local income tax liability until they are withdrawn. Our team can set-up and manage these plans, helping you effectively maximize the value of accumulated leave payouts for both you and your employees.
FICA Alternative Plan Optimization
Public sector employers and employees enjoy significant tax savings with FICA Alternative Plans. These retirement plans, under IRS Code Section 3121, let you avoid paying the matching 6.2% Social Security contribution and replace it with an impactful 7.5% pre-tax contribution from the employee’s wages. Employees get close to the same take-home pay, even though their retirement contribution is higher. Plus there’s the added benefit of potential tax-deferred growth.
We can help you optimize your existing FICA Alternative Plan to ensure that you’re administering it for maximum savings.