Flexible Benefits and the Small Business

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0 height="100%"><tr> <td valign="top" width=20% BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <B><IMG SRC="e126a390.jpg" border=0 width="106" height="57" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></B></div> <div> <B>Home</B></div> <bR> <div> <A HREF="how_hr_can_help_you_get_the_most_out_of_your_team.htm" TARGET="_top" TITLE="How HR Can Help You Get The Most Out of "><U><B>How HR Can Help You Get The Most Out of Your Team</B></U></A></div> <div> <A HREF="business.htm" TARGET="_top" TITLE="Business Needs to Bend a Little?"><U><B>Business Needs to Bend a Little?</B></U></A></div> <div> <A HREF="to_lay_off_or_not_to_lay_off.htm" TARGET="_top" TITLE="To Lay Off or Not to Lay Off"><U><B>To Lay Off or Not to Lay Off</B></U></A></div> <div> <B><IMG BORDER="0" SRC="Symb075c00b7008cbf000000.gif" HEIGHT="9" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Flexible Benefits and the Small Business </B></div> <div> <A HREF="new_role_of_the_hr_professional.htm" TARGET="_top" TITLE="The New Role of the HR Professional by J"><U><B>The New Role of the HR Professional by Joan Lloyd at Work</B></U></A></div> <bR> <bR> <bR> </td> <td valign="top" BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <IMG SRC="e136a390.jpg" border=0 width="106" height="57" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <div> <B>Your Workforce Management Professionals</B><FONT SIZE="1" COLOR="#000000" FACE="Arial" >SM</FONT></div> <bR> <div> <B>HR Consult Monthly Article</B></div> <div> <B>Kansas City Star</B></div> <div> <TABLE BORDER="0" CELLPADDING="2" CELLSPACING="1" WIDTH="676" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#FFFFFF" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 1106 ><NOBR><div> <B> <TABLE BORDER="0" CELLPADDING="2" CELLSPACING="1" WIDTH="581" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 1074 WIDTH="575"><div> <B>Flexible Benefits and the Small Business </B></div> <bR> <div> <B>Question:</B></div> <div> <B>I'm a self-employed small business owner. Am I eligible to set up a flexible medical spending account? Are there any other options for my medical expenses?</B></div> <bR> <div> <B>Answer:</B></div> <div> Yes. Flexible Spending Accounts (FSA) provided by an employer gives options to employees on how to spend their pre-tax dollars usually associated with health benefits.  Some of the options available are:</div> <div> <B>Section 125 Premium Only Plans</B>:</div> <div> These plans save you and your employees money by reducing payroll taxes. Employees pay their portion of insurance premiums on a pre-tax basis rather than on an after tax basis and reduces your taxable payroll.</div> <bR> <div> <B>Section 125 Cafeteria Plans:</B></div> <div> Employee's re-coup some group health deductibles and co-pays and other qualified insurance premiums and costs (prescriptions and co-pays, child/dependent care), permitting savings in Social Security (FICA), federal and state taxes, while the employer reduces FICA, unemployment taxes and workers compensation taxes (where applicable).  It can be a win-win situation for both parties. </div> <bR> <div> <B>Health Reimbursement Accounts (HRA):</B></div> <div> The HRA permits employers to purchase higher deductible group plans for their employees with the HRA reimbursing the employee a portion of the increased deductible and coinsurance resulting in premium savings. Funds earmarked for HRA plans remain in the company's operating account until expenses are actually submitted for reimbursement by employees. Employees can also “roll over” unused portions of each year's allotment to subsequent plan years.</div> <bR> <div> <B>Medical Savings Accounts:</B></div> <div> A tax-exempt account established to pay medical expenses in conjunction with a high deductible health plan. Employees can use an MSA to pay for deductibles, out of pocket and other qualified medical, dental or vision expenses.</div> <bR> <div> Properly structured, these and other pre-tax programs can be of benefit to both the employer and the employee.  Although most plan setup and administrative costs are very reasonable and can be re-cooped through savings, care should be taken in determining the appropriate plan(s) for your business structure, the plan structure itself, costs and acceptability to employees. Your insurance agent, broker or human resource professional can assist you in each of these areas.</div> <bR> <div> Response provided by the staff of HR Consult.com and the <A HREF="http://old.jccc.net/acad/cip/cesched/fall2003/other/ksbdc.htm" TARGET="_top" TITLE="http://old.jccc.net/acad/cip/cesched/fal"><U>Kansas Small Business Development Center at Johnson County Community College</U></A>.</div> <DIV ALIGN="LEFT"></DIV> <div>   </div> <bR> <div> <B>FREE EMAIL NEWSLETTER</B> - Send an email to <A HREF="mailto:info@jhrconsult.com" TARGET="_top" TITLE="mailto:info@jhrconsult.com"><U>info@hrconsult.com</U></A> with the subject line “Online newsletter” to begin receiving HRC's monthly newsletter. </div> <DIV ALIGN="LEFT"></DIV> <div> <B>    </B></div> <bR> <bR> <bR> <bR> <bR> <bR> <bR> <div> © HR Consult, LLC</div> <bR> <bR> <DIV ALIGN="LEFT"></DIV> <div> <A HREF="http://hrconsult.com/dp_tellafriend/tellafriend3.htm" TARGET="_top" TITLE="http://hrconsult.com/dp_tellafriend/tell"><U><U>Email</U></U></A><FONT SIZE="3" COLOR="#000000" FACE="Arial" > this article to a Friend </FONT></div> </tD> </tR> </TABLE></B></div> <bR> </NOBR></tD> </tR> </TABLE></div> <bR> <bR> <bR> <div> <A HREF="index.htm" TARGET="_top" TITLE="HR Consult Practical People Solutions F"><U><IMG SRC="d436a390.jpg" border=0 width="106" height="57" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></U></A></div> <div> <B> 305-320-5713     </B></div> <div> <B>  </B><A HREF="mailto:info@hrconsult.com" TARGET="_top" TITLE="mailto:info@hrconsult.com"><U><B>info@hrconsult.com </B></U></A></div> <bR> <div> This web site and all information contained within Copyright © and Trademarked 2000 by HR Consult, LLC   All Rights Reserved </div> <div> <A HREF="conditions_of_use.htm" TARGET="_top" TITLE="CONDITIONS OF USE"><U>Conditions of Use</U></A>  and <A HREF="privacy_and_security.htm" TARGET="_top" TITLE="Privacy and Security"><U>Privacy Notice</U></A>. </div> <bR> <bR> <bR> <div>    <BODY> <SCRIPT LANGUAGE="JavaScript">    </SCRIPT>   </div> <bR> </td> </tr></table></body>