Webinar—1:00 PM EST on September 12th
If you want to learn about the “best” door-opening topic to get in front of affluent business owners AND their employees, sign up for the webinar by clicking on the following:
What do advisors earn who rep the program outlined below?
$10 per EE per month (0-5,000 EEs)
$15 per EE per month (5,001 – 10,000 EEs)
$20 per EE per month (10,001+ EEs)
If you onboard only 500 employees at various companies that’s $5,000 a month in revenue.
AND you are saving business owners thousands of dollars (so this is a killer door opener to discuss other issues with the business owners (retirement planning, asset protection, etc.)).
Do I have your attention? If so, let’s get right to the benefits and then I’ll explain the program.
Employer benefits—
–Reduction in payroll taxes ($400-$700 per employee on average per year)
–No net cost to the employer to offer the plan
Average Employer Savings
| #of EEs | 25 | 50 | 100 | 500 | 1,000 | 5,000 |
| Net Annual Saving | $12,000 | $24,000 | $48,000 | $242,000 | $484,000 | $2.4 million |
Employer benefits—
–$80-$100+ average raise per employee/per paycheck (26 paychecks = $2,080-$2,600)
-3 Wellness benefits at NO net cost to employees
What is a Section 125 Plan?
It’s a voluntary employee health benefit plan that can be offered by employers. It allows employees to pay qualified medical expenses on a pre-tax basis.
When an employee deducts payments to a 125 Plan, it reduces their taxable income and the employer’s Social Security (FICA) liability, federal income, unemployment taxes (FUTA), and state unemployment taxes (where applicable).
Let’s look at a paycheck example (with the unique twist of this 125 Plan)Let’s look at a paycheck example (with the unique twist of this 125 Plan)
| Monthly Income | $4,200 | $4,200 |
| Health Insurance | $185 | $185 |
| 401(k) | $360 | $360 |
| Section 125 Plan Premium | $0 | $1,200 |
| Taxable Income | $3,655 | $2,455 |
| Federal Withholding | $192 | $63 |
| State Withholding | $119 | $64 |
| Social Security | $249 | $174 |
| Medicare | $58 | $41 |
| 125 Plan Reimbursement | $0 | $1,010 |
| Net Pay | $3,037 | $3,123 |
| Increased tax-home pay | $86 |
What just happened?
- The EE signed up for the 125 Plan.
$1,200 per paycheck is deducted for the 125 Plan benefit.- The EE was credited back $1,010 as a tax-free reimbursement for the benefits
- The employer saved on payroll taxes because of the EE’s payroll deduction.
That’s the unique twist with this 125 Plan! The EEs are getting reimbursed (the blue line) for the benefits received (that’s what a 125 Plan is, it’s an expense reimbursement plan).
What health benefits are the EEs paying for?
Unlimited telehealth benefits:
-Virtual ER Telemedicine; -Urgent Care; -Dermatology; -Primary Care; -Behavioral Health
Personalized Program:
-Chronic Disease Management; -Prescriptions (37 commonly prescribed drugs at no charge and a discount drug card); -Weight Management; -Billing Advocacy; -Biometric Facial Scanner
-There is 24/7 access to a medical team along with a wellness program
-Through an app there is no waiting, no intake forms, etc. to get access to medical help
This is NOT an exhaustive list of benefits.
How difficult is this to implement? The 125 Plan firm coordinates with the company’s Payroll Department. The deductions and reimbursements are adjusted and built into the payroll program.
Real Life Example #1—33 EE electric company
–$166.55 average pay increase per month
-$512.34 average pay increase per month
–$16,230.93 average pay increase per month
Real Life Example #2—183 EE Consulting Company
–$98.60 average pay increase per month
-$512.34 average pay increase per month
-$90,007.89 average pay increase per month
FYI, I spent a few months trying to shoot holes in this concept (from a tax and legal perspective). I couldn’t find any real issues with it so…, it was time for this newsletter and webinar.
Are you ready to generate more revenue and pick up new business clients?
