QUESTIONS TO ASK YOURSELF OR YOUR BROKER

Do you have multiple Plans?

Are you currently taking advantage of the ability to offer more than one health or dental plan? Considering the option of giving your employees more than one choice ensures your business is meeting the needs of your diverse workforce. Insurance carriers only require employers to contribute the minimum required amount to the lowest cost plan.

Do you have a Premium Only Plan?

Under section 125 with the IRS tax codes are cafeteria plans that offer pre-tax benefits for eligible employers and employees. A premium only plan or “POP” is required to give employees pre-tax deductions. Annual discrimination testing is required and if ever audited by the IRS, they will request a copy of this document and proof of discrimination testing to ensure pre-tax deductions are being offered to the right employees and not the wrong ones.

Do you have a WRAP Document?

A Wrap Document is a document that employers must prepare and provide to employees. It is technically called a Summary Plan Description (SPD). The purpose of the document is to provide certain disclosures and information to employees about the benefits an employer offers. This document is required under ERISA law, which is overseen by the Department of Labor (DOL). The documents provided by insurance companies do not include everything you are required to have and are not customized to your company.