Tax Savings Opportunities

Are you maximizing your employee tax savings? 

As a small business owner all contributions that are provided for employee benefits are tax deductible. In addition, any money used by employees to purchase benefits allows the business owners to save 7.65% on payroll taxes.  If no contributions are made to a plan, the owner would actually save money by installing a employee benefits package.

Are you providing tax saving options for your employees?

With deductibles rising by 12 percent on an annual basis, are you giving options to your employees to pay for out of pocket medical expenses on a tax free basis?  Below are options that are available

Health Savings Accounts (HSA)

  • Pays for out of pocket medical expenses on a pre-tax basis
  • HSA compatible high deductible health plan required
  • Annual limits are $3,400 for individual plan and $6,750 for a family plan
  • Unused funds stay with employee and are not forfeited back to employer
  • Investment features are available

Download the HSA flyer here

Download the HSA Current Investment Options flyer here

Flexible Spending Accounts (FSA)

  • Pays for out of pocket medical expenses on a pre-tax basis
  • All employees eligible as long as a group medical policy is offered
  • Annual limit of $2,600
  • $500 rollover allowed on an annual basis

FSA Fact Sheet Employee with card and $500 Rollover

Dependent Care Assistance Program

  • Pays for day care, preschool, and elder care on a pre-tax basis
  • All employees eligible as long as a group medical policy is offered
  • Annual limit of $5,000
  • All unused funds are forfeited back to the employer

 

For more information on these programs please visit the Advantage Administrators website

www.advantageadmin.com