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Pre-Tax PremiumSimplify Benefits Administration

Flexible Benefit PlansFlexible Spending Accounts (FSAs)

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Group MedicalGroup Medical Plans

Pre-Tax Premium

Simplified Benefits Administration

Save money and lighten your administrative responsibilities by offering Pre-Tax Premium plans. These services are available at no additional cost to you when you purchase medical coverage through AAOA and UnitedHealthcare. Adding these plans to your benefit programs will enable you to reduce payroll-related taxes and increase employee satisfaction. All you need to do is enroll in these programs and UnitedHealthcare will provide all the support you need, including templates and tools to help you effectively communicate with your employees.

Pre-Tax Premium Plan

You and your employees can take advantage of a valuable tax reduction through a Pre-Tax Premium plan. The Pre-Tax Premium portion of Section 105 of the Internal Revenue Code allows for the payment of employer-sponsored insurance premiums on a pre-tax basis, resulting in savings to both the employer and their employees.The allowable employer-sponsored insurance plans that can be paid for on a completely non-taxable basis are the portion of the premium being paid by the employee. Plans that qualify under Section 125 are:

Here's how you save

Under Section 125, employee pre-tax premium contributions are not considered taxable income. As a result, your total taxable payroll is reduced, directly lowering your payroll-related taxes. Because your employees have reduced their taxable income, they pay less in federal, state, Social Security and Medicare taxes and they can actually increase their take-home pay.

Pre-Tax Premium Plan Services

You don't need to worry about handling the administrative aspects of a Pre-Tax Premium plan, UnitedHealthcare will handle it for you and will provide you with the necessary legal documents and filings required under Section 105. The following services are included in our Pre-Tax Premium plan.

What's in it for Clients and Employees?

It's easy to implement a Pre-Tax Premium plan and save money. How much you save depends on your payroll and how much your employees contribute toward their benefits.

These services are available to customers with 5 to 200 eligible employees. The legal entity under which the company operates can affect individual eligibility. Partners in a partnership or limited liability partner¬ship, members (and spouse of a member) of a limited liability corpora¬tion, self-employed individual of a sole proprietorship, and more than 2% shareholders (and family members of shareholders) in a Subchapter S corporation are not eligible to participate in a Section 105 or 125 plan. This service is complimentary when you purchase medical coverage through AAOA and UnitedHealthcare.