AgriPlan and BizPlan

Section 105 HRA Management

SECTION 105 PLAN

AgriPlan & BizPlan

AgriPlan and BizPlan clients save an average of more than $6000 a year on their taxes. The key is the ability to declare medical expenses as a business expense, rather than a personal deduction. AgriPlan and BizPlan are Section 105 Health Reimbursement Arrangements (also known as HRAs) enabling qualified small business owners to deduct federal, state, and self-employment taxes for family medical expenses.

If you are a family farmer or small business owner and are able to hire your spouse as an employee of your business, AgriPlan or BizPlan can help you and your family save thousands of dollars each year.

As of January 1, 2017, qualified businesses (more than one employee but less than 50) who do not offer group health insurance but want to assist their employees with ever-rising healthcare costs will be able to use tax-advantaged funds to reimburse employees for individual insurance and out-of-pocket medical expenses. Please reach to our knowledgeable team for more information and to discuss your options.

Why TASC AgriPlan & BizPlan (Section 105 HRA)?

Small business win
on Healthcare

For small businesses, traditional health insurance plans can be expensive. Section 105 plans, on the other hand, are a great alternative in offering cost-effective health benefits. There is one big downside though, the administrative burden can be overwhelming.

New requirements and processes go into effect on a regular basis. No worries. Our legal team and in-house Legislative Analyst ensure there’s minimal impact on you, keep you informed as things change and update your plan documents accordingly. This on top of our exclusive guarantees, makes TASC the clear choice for your Section 105 Plan.

Industry-Exclusive Audit Guarantee

We will defend you and assume financial responsibility for any penalty and/or interest resulting from an audit as it pertains to AgriPlan or BizPlan if all procedures and guidelines are followed correctly and your plan is challenged by the IRS.

Deduction Guarantee

As an AgriPlan or BizPlan client, this guarantee* entitles you to a 100% refund of your enrollment fee if during any plan year, your participation in AgriPlan or BizPlan does not result in tax deductions of at least $2000. (* not applicable to S-Corp)

Worry Free Administration

TASC streamlines reimbursement of medical expenses, validates eligible expenses, and prefills your critical Year-End Report, reducing work and ensuring your compliance. No other administrator offers this feature for an HRA plan and it’s provided by TASC at no additional cost to you or your employee.

Check eligibility at

Beneshop makes shopping for healthcare products easier by providing a wide variety of products, brands, and retailers covered under your HRA plan.

Resources

DOCUMENTS

Shellito Case Study

Learn how the Shellito family farm in Kansas saved on medical costs and taxes.

Shellito White Paper

TASC comes to the rescue and wins court battle for Shellito farms.

With and Without AgriPlan BizPlan

See how your medical expenses and taxes line-up with or without AgriPlan or BizPlan.

Frequently Asked Questions

How does the TASC Card work?

Complete a TASC Card Enrollment form or elect the TASC Card when you sign up for your plan. A participant can use the card for any eligible out-of-pocket medical expense (but not to pay insurance premiums). The card differentiates between expenses that are eligible and those that are not. When purchasing an eligible item, the card is swiped; TASC fronts the money (up to $3,500 or your plan limit, whichever is less) and pays the merchant. A business bank account is provided at plan setup to be linked to the card. Within 1-3 business days from the card swipe, TASC will request the funds back from your bank. Your administrator will receive an email notifying that funds have been taken from your business checking account for that expense. The TASC Card is not a credit card; it is a DEBIT card. Benefits of using the card include:

Automatically qualifies expenses at point of sale
Eliminates the need to reimburse the employee for medical expenses
Automatically tracks expenses online for end of year reporting

Can I pay my spouse with commodity wages?

Yes and no. You must pay at least a minimal W-2 wage (in addition to any commodity wages) to your spouse or employee in order be protected by TASC’s Audit Guarantee.

Can a greater than 2% S-Corporation shareholder participate in a One Employee HRA?

Yes. However, the savings will be limited to FICA/Medicare — or 15.3% of out-of-pocket medical expenses. If the shareholder has a significant amount of out-of-pocket medical expenses, a BizPlan is still a good investment. A 2% or greater shareholder will be required to add the AgriPlan and BizPlan employee benefit amount to Box 1 (wages, tips, and other compensation) of their employee W-2; however, this amount will be deducted from Boxes 3 (Social Security wages) and 5 (Medicare wages and tips).

Why do I want to use an HRA?

An HRA allows a small business owner to hire their spouse and as part of their compensation reimburse them for their family’s insurance and medical expenses. Without an HRA you can’t deduct your out-of-pocket medical expenses until you have reached the adjusted gross income requirement. This was 10% but was recently adjusted to 7.5%. This amount can fluctuate but only the amount above this percent is deductible. The HRA eliminates the threshold allowing you the deduction right away.

What can I deduct?

As the business owner, you can choose your plan setup with guidance from your TASC sales specialist. You can reimburse for health insurance, long term care premiums, Medicare premiums and supplements, medical sharing programs, COBRA premiums, vision and dental premiums and more. Visit beneshop™ to see what out-of-pocket expenses are reimbursable using the eligible expense checker. If you elect to use the TASC Card for your reimbursements, you can even make purchases directly through beneshop™. You can also view our AgriPlan BizPlan Guide to Deductible Expenses.

Free webinars

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AgriPlan & BizPlan
updates

AgriPlan-BizPlan IRS

Employer Health Care Arrangements

May 29, 2014