BASE^® Blog

Another tax season has come and gone.  BASE® clients saved an average of $5,000 in tax savings with the BASE® Section 105 HRA.  While many business owners missed out on this savings on health care spending.

An HRA allows self-employed business owners to deduct up-to 100% of their health costs as a business expense.  This could include insurance premiums for health, long-term care, vision, dental, as well as out-of-pocket medical expenses.

The BASE® Section 105 Health Reimbursement Arrangement allows small businesses, classified as sole proprietors, partnerships, or C or S Corporations, to reimburse their employees for qualified medical expenses, tax-free.  This plan is applicable to small business owners that can legitimately hire their spouse.

Mandy S., a BASE® HRA client since 2008 knows how beneficial having an HRA in a business is.  “The BASE® HRA is a simple way to receive tax savings. It is especially reassuring at tax season to know I am being proactive to minimize our tax exposure without too much trouble. It’s really not hard to keep track of medical expenses with the BASE® website, which is quick and easy-to-use. When I call with a question I always get professional, friendly, and constructive assistance.  The annual savings always exceeds the effort involved!”

Without this plan in place, small businesses only take the standard personal deduction for health insurance costs when filing taxes.  Business owners can deduct only a portion of their health care expenses, which is often less than half of the typical family’s expenditures.  However, if the business has an HRA in place, they have the ability to take these expenses as a business deduction, which offers savings on self-employment tax in addition to income tax.

The BASE® HRA gives businesses a simple, effective solution to deal with the cost of health care and save thousands of dollars in tax savings each year.  For more information on the BASE® Section 105 Health Reimbursement Arrangement, call 1.888.386.9680. 

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On April 19, 1999, BASE® was formed on one basic principle, COMMITMENT.  With each passing year, expectations for our products and services grow stronger.  The BASE® promise is to continue providing excellent sales and service staff to assist clients and Business Partners, innovative products and services, and most importantly, listen in our unwavering commitment to provide the best benefit programs the industry has to offer.

With the opening of the doors at BASE®, a vision was born to educate consumer driven professionals on benefit and tax saving solutions, while providing the highest degree of service.  This vision is built on the core values that make our organization what it is today: Integrity, Balance, Excellence, Community, Service, and Teamwork.

Terry Harrington, BASE® President, reflects on the past 20 years.  “We are proud to have achieved this milestone through the hard work and dedication of our staff and partners, as well as our continued commitment to service we founded this business on 20 years ago.  Looking back over the years, I am humbled by where we started and the continual growth and expansion BASE® has undergone.  We have seen our fair share of changes, but have always been purposeful and deliberate in making decisions in the best interest of our clients in our unwavering devotion to service and integrity.”

Thank you to all of the clients and Business Partners that make BASE® what it has become today.  Everyone here at BASE® looks forward to going beyond your expectations as we celebrate our 20^th year and continuing well into the future. 

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Whether a business is looking to offer a more comprehensive health care benefits package to their employees, or find other ways to save valuable tax dollars through health care savings, where do they start?  One could turn to Google and find out they need a Third-Party Benefits Administrator, but how do they know which one would be the best for their business?

A Third-Party Benefits Administrator provides and manages a business’ benefits package to help employers attract and maintain key and valuable employees, helps a business save thousands a year in tax savings, keeps a business in compliance, and assists a business with claims reimbursements and substantiation.

Some Key Things to Look for in a Third-Party Administrator (TPA):

Customer Service.  Here at BASE®, we pride ourselves on the service provided to each and every client.  Every business can count on our Sales Representatives to be knowledgeable, patient, and attentive to their needs.

Plan Design.  BASE® offers a variety of plans designed for all types of businesses.  BASE® can help provide an excellent benefits package that is customized to help maximize the potential tax savings.

Compliance.  BASE® offers a compliance solution to close compliance gaps and meet federal regulations of the ACA, IRS, DOL, ERISA, as well as insurance rules and regulations, keeping a business from the harsh DOL penalty of $110 per day, per employee.

Education.  BASE® has an outlet for continuing education courses, webinars, and much more.

Adjudication and Substantiation.  The IRS requires reimbursements and claims of all medical expenses to be substantiated through an independent third party.  BASE® adjudicates the medical expenses submitted by each participating employee and provides the proper documentation to verify the adjudication of each qualifying medical expense.

BASE® can save self-employed businesses an average of $5,000 in health care tax savings each year, provide employers with multiple employees a proven means of reducing their health insurance premiums by 10-50%, stay in compliance and away from DOL penalties, and more.

BASE® will help a business save time, save money, and stay in compliance with mandated federal regulations.   For more information on BASE®, call 1-888-386-9680 or visit our website. 

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