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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