Small businesses are eligible for several different tax deductions including education, vehicle, equipment, home office, and more. However, more often than not, when it comes to medical expenses, small businesses only take the standard deduction offered on Form 1040 for their self-employed health insurance costs. With BASE®, clients can go above and beyond the standard deduction, and can deduct both their health insurance premiums and qualified out-of-pocket expenses on their business tax return with a Section 105 HRA that fits their business.
The BASE® Section 105 HRA is the perfect fit for small business owners who are looking for a simple, effective solution to help deal with the rising cost of health care. The business owner is able to take advantage of tremendous tax savings by deducting up to 100% of their family’s qualifying medical expenses as a business deduction. The typical HRA can save an average of over $4,700 in taxes annually.
Check out this success story --- Colleen E., a BASE® Section 105 HRA client, believes that if you are a self-employed farmer, 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.”
The BASE® Section 105 HRA not only saves valuable tax dollars, but creates the necessary documentation to deduct up to 100% of their family health insurance premiums and non-reimbursed medical expenses as a business expense. “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,” said Colleen.
Colleen feels strongly about the great fit the Section 105 HRA has been in their small farming operation. “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 health care reform. The best part would be the thousands of dollars in additional tax savings each year that wouldn’t be possible without the BASE® HRA in place.” BASE® makes sure that all clients meet the requirements of the IRS, the Department of Labor, and ERISA. Without this plan in place, business owners can deduct only a portion of health care expenses – often less than half of the typical family’s outlay.
Colleen’s story is just one example of how the Section 105 HRA can help small businesses save valuable tax dollars. So whether it’s a “mom and pop” restaurant, a family farm, or any other business, there are HRAs available for all sizes. It is an important and exciting tool in an employer’s overall benefit strategy. It is a compelling, and workable, option for businesses of all sizes. Contact BASE® at 888.386.9680 to learn more about the BASE® Section 105 HRA.