A Premium-Only-Plan allows employees to pay for their share of the company-sponsored health insurance premiums with before-tax money. This reduces the cost of the employee share of premium by 25% or more (actual savings are based on the individual employee's tax bracket) and saves the employer FICA and Medicare taxes on these premium dollars.

To set up a Premium-Only-Plan you must first design the Plan, then prepare a Plan Document, Summary Plan Description and provide enrollment materials. All this must be completed prior to the start of your first Plan Year. Once the Plan is set up you must comply with all federal guidelines when operating the Plan and complete Discrimination Tests each year to show that key employees are not receiving a disproportionate share of the pre-tax benefits under the Plan.

FlexMagic Consulting, Inc. can help. Simply, complete and return the attached Consulting Agreement (on-line ordering or mail-in ordering options provided in the menu to the left) along with a completed Implementation Questionnaire and payment for the first year's services. Once the contract, information and check are received we will contact by phone to verify all information, review your Plan Design (to ensure it is compliant with current regulations) and answer any questions you may have.

You may also expand your Premium-Only-Plan in the future to include pre-tax Child/Dependent Care and Out-of-Pocket Health Care Expenses. Call our consultants to review these options.