Business Owners

Tax Treatment of Health Costs for the Sole Proprietor and Others:

As a Certified Public Accountant it is my responsibility to insure you claim every tax deduction available for yourself and your business.

It is a common fact that small business owners miss out on considerable savings with respect to the treatment of health costs. Thanks to Internal Revenue Code Section 105, self employed individuals who can employ his/her spouse in the business and offer the employed-spouse a medical benefits package then qualify to deduct 100% of their health insurance premiums as well as 100% of their out-pocket medical expenses not covered by insurance. This does not only save on Federal Taxes but Self-Employment Taxes along with State Taxes. (Please keep in mind this is not an insurance plan but a tax savings program administered by AgriPlan/BizPlan under the guidelines of IRC 105).

A FlexSystem Section 125 Cafeteria Plan provides the option for employees to select certain benefits normally paid on an after-tax basis and, through salary reduction, pay for these benefits on a pre-tax basis. The most common benefits include health insurance premiums, out-of-pocket medical expenses and dependent care expenses. Section 125 offers employees and employers a win-win situation when it comes to saving money. Employers benefit from reduced payroll costs and enhanced ability to recruit and retain quality employees. Employees benefit from being able to choose benefits that will address their individual needs and from an increase in take-home pay. FlexSystem's third-party administrative service offers daily reimbursement check processing, direct deposit of reimbursement checks, toll-free enrollment assistance, and an audit guarantee.

Maximum Advantage Pension Planning (MAPP):
Why establish a Business Pension or Retirement Plan? Expand avenues for funding retirement for employer and employees, increase employee morale and allegiance, reduce taxable income, and accelerate account growth. As a provider, I can link you up with MAPP. This unique low-cost program provides your business with flexible plan documents, plan design consultation, IRS compliance & plan operation support.

To learn how much AgriPlan/BizPlan, FlexSystem, MAPP can save your small business in taxes. Please contact me at (856) 582-9139.