BizplanNOW (for small business owners) and AgriplanNOW (for farmers)(formerly Bizplan/Agriplan) are Medical Reimbursement Plans based on Section 105 of the Internal Revenue Code, Revenue Ruling 71-588 and Letter Ruling 9409006. Usually reserved for larger companies, these plans are available to business owners nationwide. These plans are perfectly suited for sole proprietors, corporations, limited liability companies, and partnerships.
BizplanNOW / AgriplanNOW will increase your tax deductions and save you on average in excess of $4000 every year. We guarantee $2000 in writing. We often see $10,000 in annual savings simply by taking advantage of this plan usually only offered by large companies! However….
Healthcare Reform is Bringing BIG Changes That Will Affect You
For years this plan has saved substantial tax dollars annually by allowing businesses to deduct 100 Percent for their family health insurance premiums (including Medical, Dental, Optical, Cancer, Medicare Part B & D, and Long Term Care) and ALL out-of-pocket medical, vision and dental expenses not covered by insurance (deductibles, co-pays, prescription drug costs, etc.).
To qualify for a Biz Plan, a business owner must be able to legitimately employ their spouse who then becomes a W-2 employee for the business. Most spouses in microbusinesses already have an employable interest, they simply are not being compensated for their contributions! Under the new arrangement, a W-2 employee and their dependents (in our case, the business owner) are allowed by law to take full advantage of reimbursements under Section 105. The business owner will provide a reasonable taxable wage, generally on a quarterly basis, for their spouse (now a W-2 employee). Certain IRS forms will need to be filed; however BizplanNOW’s complete payroll & administrative services will assist with each IRS, DOL and ERISA document and compliance issue, while still allowing a custom designed benefit plan at your direction.
Full service or ala carte, with Bizplan NOW in place, IRS Section 105 rules legally allow the FULL DEDUCTION of your health insurance premiums and out-of-pocket medical expenses.
Can you think of a reason NOT to put $4000, $10,000, or $20,000 back into your pocket? Call us, we will take your application over the phone today so you can start saving tomorrow
With Healthcare Reform Looming and Continuing to Change,
Don’t Worry… ISS & TASC Has You Covered
Our Biz Plan works perfectly for small businesses, especially sole proprietorships of husband & wife teams. Realtors and farmers are among our ideal candidates.
Section 105 was created in 1954 by the Spousal Employment Act; however, Congress neglected to have the IRS tell anyone about it! The IRS’ mantra is “it’s not our responsibility to help you legally pay lower taxes.”
So, Section 105 of the IRS tax code allows a company to provide a “fringe benefit” of complete reimbursement of medical, dental, vision & long term care premiums AND all qualified medical expenses. You do NOT have to reach the 7.5% AGI threshold. This threshold may go up to 10% in 2013, even more severely limiting your tax advantages.
And, whether a person has a particular insurance or not – for instance if you don’t have a dental plan - you can still deduct all of your dental visits and expenses up to 4 times an employee’s salary annually.
These plans work in conjunction with Health Savings Account plans. You can even deduct the mileage ($0.23) driving to and from your doctor, pharmacy, dentist, ophthalmologist, or hospital (or for any medical or moving expenses).
Under a Biz Plan you save more than your simple tax rate - you also save FICA, Medicare, and other applicable tax shares. Why pay more taxes than you have to pay?
With sole proprietorships and single member LLCs it can be a little tricky for an accountant to set up such a plan since the owner cannot receive these benefits if they are the lone employee; HOWEVER, if the owner has a spouse who is also a W-2 employee, then both the W-2 employee AND the owner can fully benefit from this arrangement.
We completely set up this arrangement for you, from the plan document, to payroll & quarterly W-2 statements, to the filing of all forms, taxes, and notices. We even give a guarantee that if you don’t save a minimum of $2000 in a given year, we will refund the annual fee.
The average savings has been $4000 nationally, and we often write plans that save companies 2 and 3 times the national average.