WageWorks Clients have been paying up to $125 every year for Section 125 Plans. However, their clients were pretty excited to know that they can eliminate that annual $125 fee by purchasing & administering their own section 125 pop for a minimal one-time fee of $99.
What is a Section 125 POPPlan?
Section 125 of the Internal Revenue Code enables employees to avoid paying any payroll income tax on Health Insurance Premiums & Supplemental Insurance like Vision, Dental, Cancer, Term Life Insurance, Disability & Accident Premiums.
An Employee can save 25% to 40% (depends on the tax bracket) whereas an employer will save 7.65% in matching FICA taxes on every tax dollar that is diverted through the Premium Only Section 125 Plan.
The Internal Revenue Services (IRS) mandates that the POP be in writing. That is why a formal plan document is required and this is the reason why WageWorksvia their different insurance carriers charge $125 each year for these services.
But the good news is that there is an affordable way to comply with the formal plan document required by the IRS. Read on to know more about this affordable option.
WageWorks Charges $125 Every Year for Section 125 Plans
WageWorks payroll clients reported spending up to $125 every year for a Section 125 Plan. However, these same clients were thrilled to learn about an affordable way through which they can purchase & administer their own Section 125 POP Plan for a minimal one-time fee of $99.
When an employer chooses to cancel their 125 POP Plan from WageWorks carrier sources, they will discover that very little administration is done to justify the extra $125 every year. To cancel the $125 POP service before the next annual billing, employers simply need to notify WageWorks, or their insurance carrier that they have amended & restated their Section 125 Premium Only Plan with Core Documents. Additionally, employers need to mention that theirSection 125 POP will be administered in-house.
WageWorks states that the first year is free for those employers who have an employee strength of 1 to 100. However, there is a catch to this: Around 10 or more employees should be enrolled in life &supplemental medical plans. This means a licensed insurance agent will require access to every employee, at least annually, to sell employees dental, vision, accident, cancer, intensive care, disability and term life insurance policies.
However, Core Documents charges a minimal one-time fee of $99 and provides robust services that include the option of talking to an IRS Section 125 plan expert via email or toll free number during business hours, do-it-yourself non-discrimination testing, administrative support, Deluxe Binder Option for an additional $50, HSA module for just $30 more!
Saveup to $125 Annually & Conduct Your Own Non-Discrimination Testing
The one-time fee of $99 for the Section 125 plans from CoreDocuments.com also includes employer non-discrimination annual test forms. Therefore, any employer can conduct their own non-discrimination testing in a few minutes and save up to $125 annually. Core Documents’ experts are standing to answer questions.
The sole purpose of non-discrimination testing by IRS was to discourage the practice of designing extensive tax-free benefits for a few Key/Highly compensated employeessince this promotes discrimination. IRS intends to ensure that all the employees have equal access & contribution levels& eliminate discrimination.
