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Core Documents Releases Video, “Why Should I Get a Health Savings Account?”

Core Documents, the nations premier provider of affordable Section 125 Cafeteria and HRA plan documents has released a new video, “Why Should I Get a Health Savings Account?”

Bradenton, FL (PRWEB) October 01, 2014 — Core Documents, the nations premier provider of affordable Section 125 Cafeteria and HRA plan documents has released a new video, “Why Should I Get a Health Savings Account?”

This short video is designed to simply explain to employers and employees how a Health Savings Account (HSA) can be used to pre-tax payroll dollars to pay out of pocket medical expenses not covered by health insurance. Employers can use this video to explain to employees how they can make tax-free contributions to their HSA.

Each year the employer has an open enrollment period where each employee is given the opportunity to decide how much money they estimate they will spend in healthcare, dental and vision care expenses for the coming year. Each employee then elects the monthly amount to be divided into regular payroll deductions and deposited into their Health Savings Account. For many employers the open enrollment begins November 1st each year. Core Documents hopes that the timely release of this short video will help employees make their decision on how much to fund their Health Savings Account in the coming Plan Year. The video can be seen at https://www.coredocuments.com/corehsa.php

An HSA is comprised of two parts. The first part is a qualifying high-deductible health plan (HDHP) insurance policy that covers regular medical and hospital bills. The second part of the HSA allows you to make tax-free contributions to an investment account, retirement account, or HSA bank account from which you can withdraw money tax-free for medical care. The HDHP coupled with a Health Savings Account has increased in popularity as employers search for cost-effective ways to provide tax-free health benefits.

For HSA participants fortunate enough to have an employer with a Section 125 Plan modified to allow HSA deductions, tax-free means the participant avoids federal income tax and FICA taxes, which include Medicare and Social Security. This method saves the employee 22.65% to about 40% depending on their tax bracket.

Since 1997, Core Documents has been providing free plan design consulting, as well as cost effective, IRS-compliant plan documents to thousands of satisfied agents and employer groups nationwide. An important fact often missed by CPAs, Accountants, Payroll Companies, employers, insurance carriers and agents is how to pre-tax the HSA savings portion going into the investment or HSA bank account. This HSA savings piece can be pre-taxed through an employer’s Section 125 Premium Only Plan. However, the standard Section 125 plan document should be modified or amended to allow the employee to pretax their HSA savings portion through convenient employee payroll deductions. The HSA module is a $30 optional addition to the $99 standard Core Documents Section 125 Plan.

The HSA s a tax-exempt trust or custodial account you set up with a qualified HSA trustee. Clients who wish to provide access to their employees’ HSA can access state of the art, web-based administration services with a debit card optimized for mobile use, from only $9 per month per employee through a new division of Core Documents, CoreAdmin. See https://www.coredocuments.com/administration.php for more details.

Core Documents’ clients include small employer groups, PEOs, national payroll companies, Certified Public Accountants, Third Party Administrators, Agents, Brokers, a network of hundreds of Flex Affiliate websites, and law firms. Core Documents is committed to helping their clients and their employees substantially reduce their income tax liability with compliant Plan Documents that allow them to deduct insurance premiums, out-of-pocket medical expenses, dependent care expenses, and commuter and parking expenses before payroll taxes are calculated.

Visit Core Documents at https://www.CoreDocuments.com for more information.

Section 125 Premium Only Plan, or a POP Plan3D_0000_hsa is an essential part of any employer group health insurance and ancillary benefit program. Section 125 is the part of the Internal Revenue Code that allows employees to purchase health insurance and other ancillary benefits tax free. A Section 125 Plan legally allows your employees to pay their portion of medical insurance premium and other ancillary benefits premiums using pretax or tax-free dollars.

By utilizing the Section 125 Premium Only Plan to pretax HSA savings the employer saves matching Social Security (FICA), as well as federal unemployment taxes (FUTA) and generally state unemployment taxes. Employer tax savings can average 7 to 10 percent more by utilizing the Section 125 Plan with the HSA module. Employees also save an additional 7.65% in FICA taxes by pretaxing HSA savings through a Section 125 Premium Only Plan. This extra savings is lost to the employer and the employee if the HSA savings is just deducted from the employees gross income on IRS Form 1040.

Core Documents provides employers with everything they need to establish an IRS and DOL compliant Section 125 POP Plan for only $99.00 in PDF version emailed to you as soon as your document is completed. For $149, you can receive the Deluxe Binder option that includes the PDF email version ASAP, and a printed plan document in a 3-ring binder shipped via Priority Mail.

Core Documents, Inc. has been providing free consulting, affordable plan documents, and plan updates as needed for Section 125 Cafeteria Plans and Health Reimbursement Arrangements since 1997. See more information about these fringe benefit plans at Core Documents’ website: https://www.coredocuments.com, or call toll free 1-888-755-3373.