Tax Advantages for Small Business
Owners
It is a common fact that small business owners do not realize some of the tax
advantages as corporate employers. They miss out on considerable savings with respect to
the treatment of health costs. Town & Country offers the AgriPlan/BizPlan that offers
a means for self-employed individuals to deduct 100% of their health costs, given they
qualify.
For example, a self-employed business owner may offer an employed spouse a medical
reimbursement package. The reimbursement package covers any costs incurred by the employee
and any family members (including the employer him/herself). With this plan, the business
owner may take advantage of 100% tax deductibility of medical expenses including: Health
Insurance Premiums, "Qualified" Long Term Care Policies and Uninsured Medical,
Dental and Vision Care Expenses.
Flexible Spending Accounts
Town & Country is in partnership with a third-party administrator to offer you
and your employees all the benefits of a Section 125 Cafeteria Plan. The third-party
administrator would handle the administration of the plan. A Section 125 Cafeteria Plan
provides the option for employees to select certain benefits normally paid in an after-tax
basis and, through salary reduction, pay for these benefits on a pre-tax basis. The result
is tax savings for you and your employees! The most common benefits include: Premium
Conversion Plans which enable employees to pay their share of health insurance premiums
with pre-tax dollars, Medical Flexible Spending Accounts which allow employees to pay for
eligible medical expenses, such as deductibles and co-payments on a pre-tax basis and
Dependent Care Flexible Spending Accounts which enable employees to pay for dependent care
expenses on a pre-tax basis.
Some of the benefits of allowing Town & Country to assist you with the Section 125
Cafeteria Plans are: Reimbursements requests are processed twice a week, assistance to you
and your employees for questions regarding the completion of the enrollment form and any
questions regarding how the plan works.
Additionally, quarterly reports and annual reports are provided to the employer. The
employee will receive an account report on each reimbursement check.
And most important you the employer will not have to perform non-discrimination testing
or prepare the annual Form 5500. The third-party administrator provides the compliance
issues.
