Pay roll tax reduction plan
Pay roll tax reduction plan
Want to save some money for your company? We have a plan for you then! It is quite surprising that very less organization know about this cost reduction plan. This plan runs with your current healthcare plan. Most there are no upfront costs as most of the admin costs come from the FICA savings.
Here we introduce our plan which is known as the PPCP – Participatory Preventative Care Plan. The employers or employees are taxed upon on the basis of salaries. A percentage of salary paid to the employees form the basis for calculating the payroll taxes. For over five decades, the deferred compensation, the health programs and the insurance programs were used to cut the costs from the salaries of the employees. However, this plan is designed to save that entire bundle of dollars that are spent from the employee’s pockets. This plan will completely save up the wellness benefits to the employees and reduce the costs of the employers.
This payroll tax reduction plan will reduce the taxes by contributing some amount from the employees fund based on pre-taxes. This saved money in lieu of cost is then used up to cover the lost wages. You must be wondering how?
This money is utilized in purchasing additional coverage which will effectively cover up for the petty pocket expenses which are not covered by any of the insurance plans. All this will be done without affecting the employee’s present salary.
The employees are allowed to choose their best option while the employer will sponsor a defined contribution plan wherein he will incorporate the employees chosen option. While reviewing this data, it is obvious to have many queries and worries. For more information, you can also visit our website www.vipcopayrolltax.com which will give you a complete information and insight to this fantastic plan.
You will also be very curious to know how this plan works for you! Not only an employee benefits from this plan, but we have numerous perks for employers as well. For more information about this plan, go on reading! We have defined the factors, the procedure, the fundamentals and various other questions that may arise in your mind as an employer or even as an employee.
Once you have contributed to this plan, subsequently a regular payment in form of contribution to the Payroll tax reduction plan will be collected according to the selected plan and abiding the rules of the scheme. All these contributions are based on before the taxes basis and are not even included in the net taxable income. It is very much similar to the IRS 125 rules.
The IRS 125 is a cafeteria plan for the companies. This plan is separately written plan which is to be upheld by an employer for employees. This written plan explicitly describes all benefits to be received and forms rules for checking the eligibility for the plan and elections between benefits. It prescribes certain tax benefits to the employees if he chooses to be the part of the plan. The employees who elect to participate in the cafeteria plan are given an option to choose between one qualified welfare benefit and at least one taxable benefit.
A plan merely offering a choice between any two taxable benefits is not a section 125 plan under the IRS Code. It is only by way of section that the employer can offer employees a choice, to choose between taxable and nontaxable benefits and that too without any implication of taxes.
The qualified advantages are the benefits which will not defer reimbursement. It is also not includible in the employee’s gross income. Also this is all prescribed by the law under specific provisions of the IRS Code and shall not be subject to the doctrine of constructive receipt. These benefits cover the following:
• Accident coverage and healthcare benefits
• Adoption assistance to the employees
• Dependent care assistance which is extended to the immediate family
• Group-term life insurance coverage covering the entire family
• Health savings accounts
We provide incentives to both the employers and the employees who participate in this wellness program which is recognized by the government and we are the only organization who qualify for providing compliance services on this program. The government believes that this plan will help to reduce the overall healthcare costs.
The income is however subject to the threshold taxable limit. If it is within the threshold limit, the Payroll Tax Reduction System will minimize the payroll tax commitments of both the employer and employee thereby resulting in a ridiculously awesome saving of minimum up to $500-$600 per employee of the payroll tax.
The benefits of the plan are experienced by the employees in accordance to the plan chosen by them. It is in the form of incentives like insurance etc. All of these fabulous benefits accruing to the payroll tax reduction plan will cost minimum fees.
There are two broad categories of payroll taxes.
• Taxes are paid by the employer based on the employee's salaries. These are deducted from the employee’s salaries. These taxes are required to be held back from employees' salaries. These are commonly known as withholding tax. Pay-as-you-go tax (PAYG), pay-as-you-earn tax (PAYE), advance income tax and several other insurances like disability and unemployment are also included in the payroll taxes.
• The other tax is paid from the employer's pockets. It is directly proportional to hiring a member of staff. These taxes include fixed charges and are proportionally associated to the employee's compensation. The employer usually covers charges by the employer's funding. The funding usually comprises of the social security system and other insurance programs by the employer.
Generally the burden of this entire payroll tax falls on the employees. These employees are passed on the costs to the payroll taxes scheme in the form of lower wages. The payroll tax is payable only if you exceed the threshold limit of payroll taxes.
But by adopting this plan, the employer will be able to save approximately $500-$600 dollars per employee on the FICA taxes. It has additional benefits to the employees and the employers, while there will be no deductions from the employees take home salary. Instead, the employee will save on an average $150 dollars with this program.
This plan involves absolutely no copay. The employees of the company can have access to the physicians, psychologists and nurses 24/7. These doctors will be certified by the Board. These physicians will be available to the employees via teleservices. Imagine a 24/7 nurse WITHOUT a copay! All you need is a smart phone or a tablet to access these services. Isn’t it awesome!
Benefits of the plan to the employees
The employees will have the following benefits from the plan:
• No more waiting in the queue
• No scheduling and rescheduling of appointments
• Consultancy services to not just the employees but to the immediate families too
• Services to all the age groups
• Discounts on prescription and drugs
• Eyeglasses discounts, echopractic , body massage
• Advice from health experts on nutrition, weight loss, exercise and much more
• Also covers accident costs
Benefits of the plan for the employer
• No more time away from work
• Reduced absenteeism
• Savings in terms of dollars
• Happy employees
• A great working environment
• Retention of employees becomes easier with these incentives
• Reduced labor turnover
So what are you waiting for? Visit our website www.vipcopayrolltax.com or contact us and get yourself registered for this awesome plan.