IRS Section 125 (“Cafeteria Plan”) allows for healthcare expenses to be pre-taxed, which reduces the employee’s taxable income. Our plan is added to the employer’s existing 125 Plan to maximize all tax benefits for both the employer and the employee. This results in considerably lower taxable income for the employee with the Premier AlternativeTM, which means lower FICA taxes. As a result, the employer’s matching FICA is reduced as well, usually by an average of $500 per employee per year. For most companies this results in large savings every year. There is also a very unusual benefit that comes in through a non-profit company we involve in our program that will cause an even greater FICA contribution to be made on behalf of each employee than any shortfall in FICA contributions caused by participating in this program.
If a potential client meets Premier’s criteria, we will then meet with the employer to produce a quote to show the employer how much they can save by participating in our plan, and show each employee how the plan will work for them. We have a simple and brief 8 minute video that shows the plan to the employees for automated voluntary sign ups (with a 98% sign up rate on the similar program pilot).