The document discusses various tax savings plans for small business owners, including HRAs and FSAs, to help reduce the rising costs of healthcare. It outlines how these plans work and the significant tax savings they can provide by allowing business owners to deduct healthcare premiums and expenses. The final sections discuss TASC's compliance services that ensure these plans meet all applicable regulations to protect the tax benefits.

1. Tax Savings for the Small
Business Owner

2. Agenda
• Rising cost of healthcare
• AgriPlanNOW & BizPlanNOW HRA Plans
• How do HRAs work?
• FlexSystem FSA Plans
• TASC offers peace of mind
• Simple. Successful. Guaranteed
• Microbusiness Compliance Suite
• Questions

3. Rising cost of healthcare
• According to The Kaiser Family Foundation’s Employer
Health Benefits Annual Survey published in 2013, and
titled, “Cost of Health Insurance,” the average annual
premium for family coverage in 2012 is $15,745
• There has been an increase in average family premiums of
134% since 1999

4. Rising cost of healthcare
• One in five families reported they experienced serious
financial problems due to family medical bills in the past 12
month period.
• 27% put off or postponed getting needed medical care.
• 34% reported skipping dental care or checkups.

5. Rising cost of healthcare
• 2.3 trillion* in 2008
• $4.6 trillion* by 2019
• Every year more and more Americans lose
their health insurance for one simple
reason: they can’t afford it.
*Source: Centers for Medicare & Medicaid Services
“National Health Expenditure Projections
2009-2019” – November 1st, 2010

6. Save your self-employed clients
$5,000 a year!
Perfect fit for:
• Family farmers
• Truckers
• Real estate agents/brokers
• Small retail establishments

7. What is a Section 105 HRA?
• Section 105 is a 1954 tax law that allows for family
employment
• Converts normal insurance and out-of-pocket
expenses into an employee benefit program and
becomes 100% deductible!

8. HRAs are alive and well!
• Are employer-sponsored HRA Plans still legitimate?

9. How do HRAs work?
15.0 % Federal tax rate
5.2 % State tax rate
15.3 % Self-employment tax
35 % Total tax rate

10. 2014 Comparison
With Section 105
Premium Deduction 100%
$9,299 x 100% = $9,299
Federal, State & SE Tax Rate
$9,299 x 35.3% = $3,255
Tax Savings = $3,255
Non-Insured Expenses 100%
$5,362 x 100% = $5,362
Federal, State & SE Tax 35.3%
Tax Savings $1,877
Total Expenses $14,661
Total Deduction $14,661
Total Tax Savings
$5,132
Without Section 105
Premium Deduction 100%
$9,299 x 100% = $9,299
Federal Tax Rate
$9,299 x 15% = $1,395
Tax Savings = $1,395
Non-Insured Expenses 0%
$5,362 x 0% = $ 0
Federal & State Tax
Tax Savings = $ 0
Total Expenses = $14,661
Total Deduction = $9,299
Total Tax Savings
$1,395

11. Who qualifies?
• Sole Proprietor
• Partnership
• C-Corporation
• Non-Profit
• Limited Liability Company
• S-Corporation

12. Employers without Group
Insurance can still offer pre-tax
benefits

13. IRS Notice 2013-54
• A company with more than one eligible employee will
no longer receive a tax advantage through a HRA
unless it sponsors group insurance

14. TASC has a solution
• No Limit Plan
• Non-Employer Sponsored Premium (NESP)
• Non-Excepted Health FSA Plan (NEFSA)

15. No Limit Plan
• The No Limit Plan is a self-funded health Plan that
meets all Healthcare Market Reform requirements.
• There is no limit to the amount of insurance premiums
or out-of-pocket medical expenses that can be
reimbursed to your family-member employees.
• The following are reimbursable expenses under the
No Limit Plan:
– Insurance premiums
– All out-of-pocket medical expenses

16. No Limit Plan
• Disclaimer: No Limit Plan increases risk to the
business
– Please be aware that the No Limit Plan could expose your
business to an additional risk: having a high amount of
medical claims written off through your business.
– If you have employees who are not family members, this type
of benefit Plan is not recommended.

17. Non-Employer Sponsored
Premium
• Employers May Continue to Reimburse Employees
for Individual Premiums

18. Non-Employer Sponsored
Premium
• TASC’s Non-Employer Sponsored Premium Account
(NESP) is designed for employers and employees to
contribute tax-free dollars toward individual health
insurance.

19. Non-Excepted Health FSA Plan
• Both employers and employees may contribute tax-
free dollars to help employees pay for eligible out-of-
pocket medical expenses

20. FlexSystem FSA
• Section 125 Cafeteria Plan
• Pre-Tax Dollars
• Flexible Spending Accounts
• Medical
• Dependent Care
• Transportation
• Insurance Premiums
• Save between 25% and 40%
• Reduced Payroll Taxes

21. FlexSystem FSA
Annual Salary: $35,000
Out-of-Pocket Medical/Dental Expenses: $ 1,000/year
Out-of-Pocket Dependent Care Expenses: $ 2,500/year
Without FSA With FSA
Gross Pay $ 35,000 $ 35,000
FSA Contribution - $ 0 - $ 3,500
Taxable Income $ 35,000 $ 31,500
Taxes (Fed, State, FICA) - $ 10,500 - $ 9,450
Out-of-Pocket Expenses - $ 3,500 - $ 3,500
Reimbursement from FSA + $ 0 +$ 3,500
Take-Home Pay $ 21,000 $ 22,050

22. Who qualifies?
• Greater than 2% Shareholders of S-Corporations are
excluded.
• Highly compensated employees are excluded.

23. SIMPLE Cafeteria Plans
• Provides new opportunities for some owners and
highly compensated employees to participate where
they could not in the past.
• A FSA Plan with no discrimination testing, but with a
required employer contribution.
• For groups under 100 employees.

24. SIMPLE Cafeteria Plans
• Employer contributions to a SIMPLE Cafeteria Plan
must be sufficient to provide benefits to non-highly
compensated employees.
• Employers must choose one of the following
contribution methods:
– Uniform Contribution: A uniform percentage (at least 2%) of
compensation, whether the employee does or does not make salary
reduction contributions to the plan; or
– Matching Contribution: The lesser of 2x the employee’s annual
contribution, or 6% of the employee’s annual compensation.

25. TASC offers peace of mind
These comprehensive and innovative employee benefit
plans have been specifically designed for this new
regulatory environment.

26. TASC offers peace of mind
• In-house Legislative Analyst to ensure we make any
necessary adjustments to your Client’s Plan features to
protect their tax savings.
• AgriPlanNOW and BizPlanNOW include everything
you need to ensure your Client’s Plan meets
documentation and compliance requirements with IRS,
DOL, ERISA
• FlexSystem Clients can add on additional compliance
features
– Non-Discrimination Testing
– 5500 Paperwork Filing
– PCORI service

27. Simple. Successful. Guaranteed!
• Industry exclusive Audit Guarantees for AgriPlanNOW
BizPlanNOW and FlexSystem.
• Money Back Guarantee for
AgriPlanNOW and BizPlanNOW.
• FlexSystem offers daily
reimbursement floating of
Uniform Coverage Dollars.

28. Simple. Successful. Guaranteed!
• Innovative TASC Card lets your Clients pay for your
out-of-pocket medical expenses with the swipe of a
free debit card.
• Carry Over unused medical expenses.
• Online tools.

29. Simple. Successful. Guaranteed!
• MyBenefits
– TASC Card qualifies and pays eligible
expenses on the spot
– Purchases are limited to healthcare merchants
under your Plan
• MyCash
– Reimbursements are fast and convenient
– Use MyCash funds just like cash at any retailer
that accepts major cards.
– Withdraw at an ATM or transfer to a personal
account.
• Mobile App

30. Simple. Successful. Guaranteed!
• National presence with local expertise.
• Unique field force model which supports our Providers
by assisting at multiple stages of the sale.
• Industry and market education and training.
• Dedicated, trained Customer Care staff provides
service through multiple channels.
• Microbusiness Inside Specialist team dedicated to
helping you qualify and enroll your Clients.

31. Microbusiness Compliance Suite

32. Welfare Benefit Plan Compliance
• The Department of Labor (DOL) has jurisdiction over ERISA
compliance
• If you provide a Welfare Benefit Plan (such as group insurance)
then you must have a Summary Plan Description (SPD)
• You may have plan documents from several providers, but these
are not a SPD.
– A SPD merged all single plan document into 1 summary document
– SPDs must be distributed to employees in a timely manner and be accurate &
up to date
• Failure to provide a plan participant with an SPD within 30 days of
an employee request carries a maximum $110 per day penalty

33. ERISAEdge
• Prepare all required documents
– Plan Document, Summary Plan Description, Summary of Material
Modification, Summary Annual Report and the IRS Form 5500
preparation (if applicable).
• Assistance during a Department of Labor (DOL) audit.
• Ensure timely disclosure of Plan changes to employees.
• Monitor legislative and regulatory changes, ensuring the Plan is
up-to-date.
• Automatically distribute all amendments due to regulatory updates
to Plan Participants.
• Maintain all required records for the mandated amount of time.
• Share guidelines for disclosing required information to employees.

34. HIPAA Compliance
• Assists in compliance with HIPAA requirements.
• Provides a cost-effective compliance solution.
• Removes burden of researching compliance need, creating
documentation, and more.
• Fosters peace of mind that comes with ensured compliance with
HIPAA regulations.
• Helps employers avoid fines and penalties.
• Provides easy-to-understand materials and directions for
maintaining compliance with HIPAA Privacy and Security rules.
• Stays abreast of changing regulations.
• Provides toll-free customer service.

35. Contact us
• Call: 888-595-2261 Ext. 17732
• E-mail: microbusiness@tasconline.com
• Visit: www.tasconline.com/partner/information-
request/