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An extra edge for your
sales efforts
Today more than ever, employers
face escalating business expenses and increasing
tax burdens. At the same time, employees want
more benefit choices and the freedom to decide
which benefits best meet their needs.
While voluntary benefits provide one solution,
many employers are looking for additional ways
to ease the financial burden of benefit costs
while meeting employee benefit needs. A possible
solution - a Section 125 plan.
Under a Section 125 plan, employees
can pay for qualified benefits , such as medical
insurance, disability income, dependent care costs,
and out-of-pocket medical expenses with pre-tax
dollars. For employees, this reduces their FICA,
state, and federal tax obligations, which in turn
increases their spendable income. And, since employees
select only those benefits they need, they're
not paying for benefits they don't use.
A Section 125 plan benefits employers
as well, by reducing various payroll-related employment
taxes, which in turn reduces payroll costs. What's
more, employers benefit from offering their employees
an enhanced benefit program-at little or no additional
cost.
American Fidelity Assurance Company
can assist with the administrative services required
by employers to set up and maintain a Section
125 plan due to strict IRS and ERISA regulations.
At American Fidelity, it is important
that the plans you provide are in compliance with
state and federal regulations. American Fidelity's
Section 125 Administrative Services include:
- Providing a plan document based on information
furnished by the employer for review by your
client's legal counsel.
- An annual employee reservice and re-enrollment.*
- Reviewing benefit choices and assisting with
the enrollment for each employee at the time
of the annual reservice.*
- Providing completed salary reduction forms
to payroll staff - ensuring that your client's
plan gets off the ground correctly and quickly*
Looking for a way to increase the
value of the benefits you bring to your clients?
American Fidelity administrative services for
your client's Section 125 plan can help.
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