Employer Payroll Tax Savings Using Section 125 with HSA Plans
Lake Geneva, WI (ContentDesk) October 5, 2005 -- HSA Trustee Services a nationwide provider specializing in opening Health Savings Accounts/HSA, working with Core Documents, Inc., a nationwide leader in providing compliant plan documents for Section 125 Premium Only Plans (POP), Flexible Spending Account Plans (FSA), Section 132(f) Commuter Plans, and Health Reimbursement Arrangement (HRA), have developed a HSA module for the Section 125 Premium Only Plan that allows the HSA savings component to be pre-taxed.Setting up a Section 125 POP with the HSA module allows business owners to save matching Social Security (FICA), as well as federal unemployment taxes (FUTA) and generally, state unemployment taxes, on the money employees contribute to their premiums as well as the HSA savings component. Employer tax savings can average 7 to 10 percent. In California and several other states the Section 125 payroll deductions reduce the threshold on which workers compensation premiums are levied for even more savings to the employer. For example, if an employee pre-taxes $5,150 into the HSA savings account, the employer will save approximately $500 in matching FICA & FUTA taxes. (These numbers are examples.
A tax advisor should be consulted for information on individual state regulations.)Employees realize savings in their FICA, federal, and, in most cases state income taxes. This is roughly a 30% tax savings. An employee who pre-taxes his HSA savings component through the POP, funds his account tax free or pretax instead of funding it with after tax dollars outside the group and then writing it off his taxes at the end of the year. It's a "save-as-you-go" pretax HSA payment plan. An employee who saves the HSA maximum $5,250 through the Section 125 POP reduces his or her payroll taxes by approximately $1,545.
(Depending on the employee's tax bracket the savings could be more or less).For more information on how your company can take advantage of this Section 125 with the HSA module contact HSA Trustee Services 866-HSA-2010, www.hsaTrusteeServices.com About Core Documents, Inc.: Core Documents, Inc. has assisted thousands of employers and tens of thousands of employees since 1997 reduce their income tax and FICA tax liability through the use of IRS compliant plan documents including: Section 125 Premium Only Plans (POP); Cafeteria Plans; Dependent Care Assistance Plans; Medical Expense Reimbursement Flexible Spending Accounts (FSA); Section 132(f) Transportation Fringe Benefit Plans; and the new Health Reimbursement Arrangement Plans (HRA). For more information contact Gene Ennis, Core Documents, Inc. 888-755-3373, www.CoreDocuments.comAbout HSA Trustee Services:HSA Trustee Services is an nationwide provider specializing in opening Health Savings Accounts (HSA) for individuals, families and groups since the inception of the HSA program in January 2004. HSA Trustee Services was the first TPA to offer "no monthly fee" HSAs which includes a free prescription discount drug card.
If you would like more information on this program, or the other benefits of using HSA Trustee Services, please call 866-HSA-2010. HSA Trustee Services, dedicated to "Keeping the $avings in the Health Savings Account"..
Checks
Checks are negotiable instruments asking a bank to pay a specific amount of money from a specific account to a bearer or payee. The account is ideally in the depositor's name with the bank. The depositor or check maker and the payee can be either natural persons or legal entities. A check must contain all the features to be considered valid. Check number, account number, MICR, date of issue, payee, amount of currency, and signature of drawer are the basic pre-requisites of a check.
A check is usually valid for six months after the issue date unless indicated otherwise. However, the validity may vary in different countries.
Checks come in several types. In the U.S., checks are regulated by the Uniform Commercial Code, Article 3. Two very common types of checks are order checks and bearer checks. An order check is payable only to the named payee or his endorsee.
It begins with "Pay to the order of". A bearer check is payable to anyone who is in possession of...
Checks
Payroll > Checks
SurePayroll Adds New Payroll Service Features that Appeal to its Larger Small Business Customers
SurePayroll Inc., the nation's largest online payroll provider, today announced that it has added an extensive suite of deductions and earnings options that will allow its payroll customers more convenience and flexibility.At no additional cost to customers, SurePayroll added 36 more deductions features to bring the total deductions options to 49, and 12 more earnings features to bring the total earnings options to 21.
The complete suite of new features will be functional by December 21.Using the Internet, SurePayroll allows customers to process payroll themselves, whenever and wherever they want.
After initial set up, customers simply enter their employees' hours and SurePayroll's automated system takes care of the rest, including filing all taxes.
The convenient online system gives customers ultimate control.
Unlike with traditional payroll services, administrators can preview payroll before running, view online payroll reports and make changes to...
Payroll > SurePayroll Adds New Payroll Service Features that Appeal to its Larger Small Business Customers
Outsourcing
Can your business benefit? Depending on the project, outsourcing can sometimes be a very cost-effective business decision. Sure, we can all accomplish some of it in-house, but can we do it all, and do it well? Would it surprise you to know that Compaq Computer? outsources? How about Underwriters Laboratories?? Gateway Computers?? Yes, even the Chicagoland Area Chamber of Commerce?! I was involved with projects involving each one of these companies. They all outsourced specific portions of their projects. Even Hyperformance Media out-sources specific project requirements! Every business does not know every other business. What I mean is, your business can not know everything there is to know about printing (for example).
Therefore, in certain situations, it would benefit your company to outsource this service to some printing specialists. It could save you time, money, and benefits, leaving your employees their time to continue to do what they do best, their job - with minimum...
Outsourcing
Payroll > Outsourcing
New Prepaid Credit Card from USA Paycard Free For Most Employers
Madison, WI (ContentDesk) July 27, 2005 -- USA Paycard, Inc., a leading provider of payroll disbursement products, today announced its release of its "PayCard", a prepaid credit card that takes the place of the traditional payroll check.
The PayCard can be used in several ways, including regular pay, expense reimbursement (Per-Diem payments), commission payments, bonus or reward payments, paying employees who work off-site, termination payments, payroll adjustments and other one time payments.This payroll card allows employers to use direct deposit for employees who lack a traditional banking relationship.
This translates into lower payroll check processing costs ? an average of $48 per employee, per year according to a 1999 NACHA study.Each participating employee receives a prepaid payroll credit card serving as their paycheck, good at over 1 million ATMs and merchant locations nationwide and everywhere MasterCard is accepted.
Employees are no longer hassled...
Payroll > New Prepaid Credit Card from USA Paycard Free For Most Employers
PerfectSoftware and NetBase Establish Stragetic Relationship
Perfect Software, a leading provider of Human Resource Management Systems, today announced it has formed a strategic relationship with NetBase Corporation., a leader in Time & Attendance software and services.
Under the new association, each company will offer its software products to the other's customer base as additional applications to complement their existing solutions.The intuitive and flexible design of NetBase products will enable Perfect Software's clients to easily and seamlessly integrate a Time and Attendance solution that will enable them to boost productivity across their entire enterprise."easyTIMESHEET is the most intuitive and user friendly web based timesheet we've seen, said Michael Schindel, vice- president of marketing at Perfect Software. The partnership between Perfect Software and NetBase offers our clients a very comprehensive and cost effective solution that will simplify the process of collecting time and attendance information.""PerfectPayroll is...
Payroll > PerfectSoftware and NetBase Establish Stragetic Relationship
Business Tax Loophole: Leasing Assets To Your Corporation
While there are many equally valid reasons to incorporate, saving money on taxes is a consideration that can yield relatively immediate results.
Leasing assets to your corporation is a tax strategy you should absolutely consider if you already have a corporation or are thinking about forming one.
Here's how it works.Just because you incorporate doesn't mean that the corporation must own all of the assets it uses.
In fact there are many legal, tax and financial considerations for NOT having your corporation own its own assets. Leasing assets to your corporation is a perfectly legal and advantageous way to reduce your overall tax liability.
When you lease assets to your corporation, the business pays a lease or rental payment and you in turn claim the lease or rental income. By doing this, you as the lessor get to deduct items such as acquisition interest, depreciation, repairs and maintenance, insurance and administrative costs.
When interest...
Payroll > Business Tax Loophole: Leasing Assets To Your Corporation