1. Tax savings for employers & health-care savings for employees
The Affordable Care Act, through a qualified wellness program using Section 125 code, can create a tax
savings for employers, and employees. Here is how it works:
Participation in the wellness program allows for a salary reduction through the Section 125 that creates
the tax savings and is then paid back into the employees take home pay as a claim payment from the
wellness program. This creates a delta of Flex credits the employee can now use to shore up their
existing Health coverage with supplemental coverage’s such as accident, critical illness, cancer, short
term disability, life, etc. This occurs with no out of pocket cost to the employer or employee and the
employees’ take home pay does not go down! (The average benefit flex dollars is $150 to $200 per
month for additional coverage for employees to choose from the various supplemental insurance
products!)
The employer side will see an average $450 to $500 per employee per year of tax savings. . The
employer tax saving’s are separate from the employee flex credits they use to secure additional
coverage.
There are qualifications and compliance issues to be met, but we do the back office components for you
to keep everyone compliant. (A group of 100 employees could see $50,000 in savings. A group of 20
could see $10,000 a year in savings while adding the benefits of the BeneFlex Wellness Program.
In summary the benefits of the BeneFlex Wellness Program are:
1. Tax savings for the employer.
2. Expanded benefit offering for your employees at no out of pocket cost to employer or
employee.
3. Reduction in employee turnover.
4. Increased morale in your employees.
5. Healthier employees
BeneFlex Wellness
Andrea Farrell
417.612.3535
Andrea@esstrat.com