BASE^® Blog

In the Star Wars movie franchise, Obi-Wan Kenobi explains the Force to Luke as “an energy field created by all living things.  It surrounds us, penetrates us, and binds the galaxy together.”  Let BASE® be the Force that surrounds your business with compliance within the ACA, IRS, DOL, ERISA, and insurance rules and regulations, penetrates your business with our commitment and outstanding customer service, and binds all your benefit needs and money saving strategies together!

BASE® offers businesses a variety of Health Reimbursement Arrangements tailored to each business’ structure and needs.  With an HRA in place, there are sizeable savings for both the employer and employee.  Whether a business owner is self-employed or has a business with multiple employees, BASE® HRAs have varying plan designs to meet client needs.

Take for example the BASE® Section 105 HRA, self-employed business owners are able to take advantage of tremendous tax savings by deducting up to 100% of their family’s qualifying medical expenses as a business deduction.  More often than not, small businesses only take the standard personal deduction for health insurance costs when filing taxes.

With the Section 105 HRA, on average, small business owners save over $4,700 in tax savings each year.  Not only do they reduce the financial impact of health care expenses, but can also pay for eligible out-of-pocket health care expenses while paying no taxes on their reimbursements.

Sounds like a good Force to be partnered with, but don’t just take our word for it.  Check out what Colleen E., a BASE® HRA client, had to say:

The Section 105 BASE® HRA is the most affordable health reimbursement plan that we have found. The staff has been very friendly and helpful from the very beginning. From the guidance offered the very minute we enrolled in the plan to the necessary documentation, we have felt everything has been very easy to understand. My husband and I feel that the staff is very knowledgeable with answers to any questions, and always keeps us informed of compliance issues that might arise in the age of healthcare reform. The best part would be the thousands in additional tax savings each year that wouldn’t be possible without the BASE® HRA in place.

If you are a self-employed farmer or business owner or own a small company looking for ways to save on the cost of out-of-pocket medical expenses and health insurance premiums, BASE® has many HRA options available for you to inquire about.  They have the knowledge to help you get started with the proper option for you.  As a self-employed farming team, we highly recommend the Section 105 BASE®HRA to create a means to save on your taxes each year.

BASE® provides plan design, implementation, and compliance services with a staff that is well- trained in assisting each and every business in maximizing a company’s tax savings.  Plus, BASE® is making sure the plan is in compliance with all government rules, as well as, insurance rules and regulations.

May the force be with you.  Call today to take advantage of the tremendous tax savings options with BASE®.  For more information, please call 1-888-386-9680. 

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Grow Your Business with a BASE® 125 Cafeteria Plan

Spring has sprung, and like anything in spring, all kinds of things have begun to grow.  Why not take this time and help grow your company’s benefits package with a BASE® 125 Cafeteria Plan?

Another thing “growing” this year is the rising cost of health care.  In 2018, there will be a rise in the increase of health care costs, from 4.6% to 5.5%, but with a creatively designed health insurance and benefits package, the rise in employers’ costs may be less than the overall health care inflation.  (Health Premiums Expected to Rise 5.5% in 2018, Driving Cost Management Steps).  By incorporating a BASE® 125 Cafeteria Plan into the business, employers can customize a benefits plan to help their employees with the rising cost of health care and both save money.

The BASE® 125 Cafeteria Plan (a form of Consumer-Driven Health Plan – CDHP) consists of the Flexible Spending Account (FSA), Limited Purpose FSA, Dependent Care Assistance Plan (DCAP), and Premium Only Plan (POP).  These plans allow employees who are paying for medical expenses, insurance premiums, and/or dependent care expenses to do so on a pre-tax basis.

Flexible Spending Account (FSA) – an employee sets aside a specified amount of pre-tax dollars from each paycheck to pay for out-of-pocket medical expenses.  The money is used in paying for qualifying medical expenses, such as co-pays, vision care, dental care, and deductibles.  A full list of legitimate expenses that can be reimbursed can be found under Code 213(d).

Limited Purpose FSA – an employee sets aside a specified amount of pre-tax dollars from each paycheck to pay for dental and vision expenses only.  This plan is for the employers who offer a Health Savings Account (HSA) and want to add additional cost saving measures for their employees.  By limiting reimbursements to only the dental and vision expenses, individuals remain eligible to participate in both the Limited Purpose FSA and HSA.

Dependent Care Assistance Program (DCAP) – an employee sets aside a specified amount of pre-tax dollars from each paycheck to pay for qualifying dependent care expenses.  Qualifying dependent care expenses are considered daycare, preschool, before and after-school care, and elder care.

Premium Only Plan (POP) – this plan allows for employees to pay for a variety of employer-sponsored benefits, such as health, dental, vision, and supplemental insurance premiums with pre-tax dollars, ultimately reducing taxable compensation.

There are numerous benefits to both the employer and employee when implementing a BASE® 125 Cafeteria Plan into the business.  The employer will see financial benefits with the employee’s pre-tax contributions that will reduce the employer’s share of FICA and FUTA taxes, an enhanced benefits package that helps to give the business a competitive edge when hiring, and an option for increased plan participation and savings with more employees participating.  The employees will see increased take-home pay since the funds are transferred from their wages on a pre-tax basis; they will save on federal, state, Social Security, and Medicare taxes.  Employees will see increased benefit savings with the money they have set aside for qualified out-of-pocket expenses.

In a recent study, 90% of larger employers will offer at least one Consumer-Driven Health Plan (CDHP) in 2018 with one focus in mind – enhancing their employees’ experience.  (Health Premiums Expected to Rise 5.5% in 2018, Driving Cost Management Steps).  With a Cafeteria Plan from BASE®, employers can nurture benefit packages that will provide personalization and savings.   

For more information on how a BASE® 125 Cafeteria Plan can help grow an employer’s benefit package, please call BASE® at 1-888-386-9680 or visit the website. 

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