| Especially if you happen to be one of
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| | exempt from income, payroll, and
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| those unflinchingly ambitious
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| | unemployment taxes. This exemption
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| micro-business entrepreneurs, I've been
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| | generally also applies to payroll and
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| reading about everyday in pubs like
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| | unemployment taxes paid on behalf of
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| Crain's Chicago Business, you'll
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| | employees. (Take a look at IRS Pub. 15-B
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| eventually find that designing and
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| | for exceptions, including treatment of
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| offering up an attractive
| |
| | highly compensated employees and certain
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| employee-benefits package will be an
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| | shareholders of Subchapter S
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| essential component of your future
| |
| | Corporation's.)
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| growth. An attractive health plan will do
| |
| | Premiums paid to a group life benefits
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| just that - attract - helping you recruit
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| | policy are typically exempt from income
|
| and retain crucial employees (meaning
| |
| | and unemployment taxes. In addition,
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| those fought over creative class
| |
| | premiums paid for up to $50,000.00 of
|
| knowledge worker types Richard Florida is
| |
| | benefits coverage per employee tend to be
|
| always yammering about). You'll also find
| |
| | exempt from payroll taxes. For additional
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| that a generous group plan will help link
| |
| | details, see IRS Publication 15-B.
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| your employees' interests to your
| |
| | You see, cafeteria plans offer you some
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| concern's.
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| | versatility in putting together a
|
| That said, there are a seemingly
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| | benefits plan for your workforce. There
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| unlimited number of group benefits
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| | are other categories of fringe benefits
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| options to consider. One that you'll want
| |
| | that you can offer your employees in a
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| to move to the top of your list is a
| |
| | cafeteria plan that may be excluded from
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| Cafeteria Plan. The cafeteria brand of
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| | taxable income under IRS
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| benefit plan can add a lot freedom to a
| |
| | benefit-exclusion rules. Using a
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| employee compensation package, allowing
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| | flexible-spending account -- namely,
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| your workforce to choose benefits options
| |
| | establishing a DCRA and HCRA -- may help
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| ala carte, if you will - selecting only
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| | to jump-start a cafeteria plan for your
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| the benefit options they're most
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| | workforce. If you maintain a cafeteria
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| interested in.
| |
| | plan, the IRS requires you to complete
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| Perhaps I should start closer to the
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| | IRS Form 5500.
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| beginning ... cafeteria plans, also known
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| | To help you keep track of
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| as the flexible spending account, the
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| | employment-related costs, the U.S. Bureau
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| choice spending account or the section
| |
| | of Labor Statistics (BLS) publishes a
|
| 125 plan, have become increasingly
| |
| | quarterly statistic called the employment
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| popular over the last few years because
| |
| | cost index. The cost index measures
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| they're designed to offer employees a
| |
| | changes in employee-compensation costs,
|
| truly convenient way to pay medical
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| | which include salaries, wages, and
|
| expenses with pre-tax dollars; relieving
| |
| | benefits. In addition to publishing the
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| them of the burden of federal, and state
| |
| | quarterly cost index, BLS publishes an
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| taxes.
| |
| | annual survey of compensation costs.
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| To take advantage of a flexible spending
| |
| | One last thing ... the information above
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| account, eligible employees set aside a
| |
| | is practically for entertainment purposes
|
| pre-designated amount each year, in order
| |
| | and shouldn't be interpreted as financial
|
| to pay for medical expenses aren't
| |
| | advice. For advice specific to your
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| already eligible for coverage. The two
| |
| | firm's circumstances, don't hesitate get
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| most common types of flexible-spending
| |
| | advice from a financial, tax or benefits
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| accounts are dependent care reimbursement
| |
| | consultant. You may even want to flat
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| (also known as DCRAs) and health care
| |
| | out hire an Interim benefits consultant
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| reimbursement accounts. Employees pay for
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| | or a full service benefits consulting
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| non-reimbursed expenses from these
| |
| | firm. There are also a number of good
|
| accounts. Unfortunately,
| |
| | sources of information on the Web you can
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| flexible-spending accounts are
| |
| | take advantage of. The Employee Benefits
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| "use-it-or-lose-it" accounts; meaning
| |
| | Research Institute (EBRI), International
|
| that any funds leftover at the end of the
| |
| | Foundation of Employee Benefit Plans
|
| year can't be "rolled over," so to speak.
| |
| | (IFEBP), and American Benefits Council
|
| Exceptions To Those Limits Apply to Key
| |
| | are independent sources of truly
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| Employees
| |
| | "actionable" employee-benefit plan
|
| Typically, funds set aside in a cafeteria
| |
| | information.
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| plan's flexible-spending account are
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| |
|
