Health Savings Account (HSA)

If you cover employees under a High-Deductible Health Plan (HDHP), you may offer a Health Savings Account (HSA) to help them save on the following covered expenses such as medical, Rx, dental & vision, long-term care & Part B medicare and COBRA premiums.

• Contributions go in tax free, grow tax free and distributions are tax free for the above qualified expenses.
• Both employees and employers can make contributions to an HSA.
• HSAs are a smart way to boost employee satisfaction because their unused account balances carry forward at the end of each year.
• In 2023, the maximum HSA contribution is $3,850 for an individual and $7,750 for families in addition the catch-up clause for those over age 55 can contribute an addition $1,000 into their account
• Better than a 401K with all of the tax savings with employer tax savings of 7.45% and employee tax savings are based on their individual tax rate.

Premium Only Plan (POP)

A Section 125 Premium Only Plan (POP) provides employer & employee tax savings while allowing employers to make pre-tax deductions on group medical, vision, dental, disability, term life insurance and Health Savings Account contributions thru payroll deduction.

Through a POP, employees can pay employer-sponsored premium payments on a pre-tax basis, which increases their take-home pay thru additional tax savings.

Employers are responsible for establishing and maintaining the plan, but a POP is still worthwhile because the potential for tax savings is significant. As an example, for every employee who contributes, you’ll save up to 7.65% in Federal Insurance Contributions Act (FICA) taxes and the employee has their tax savings too!