Tax-Savings Opportunities

Take advantage of tax benefits for providing your employees with health insurance.

Running a small business is a balancing act. Balancing the need to provide your employees with health coverage while keeping costs down can be difficult. We can help.

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Tax-saving benefits for your small business health plan1

Note: These options are available to both Assurant Small Group Select® and Assurant® Self-Funded Program.

A Section 125 Premium Only Plan (POP)


A Section 125 POP can help employers lower their business expenses and help employees keep more of their own money.

Tax savings for employees
  • Employees save $25 to $30 of every $100 paid for eligible premium through a pretax payroll deduction, depending on their income tax rate
  • If you have a Health Savings Account (HSA) plan, employees can also make contributions to health savings accounts with pretax dollars

Tax savings for employers
  • Employers pay less in payroll taxes because employee contributions are subtracted from taxable payroll, resulting in savings on FICA and other payroll-related taxes
  • Employers save 7.65% (the FICA payroll tax match) on every dollar employees pay for eligible premium through a pretax payroll deduction

Set up these tax-advantaged plans with our administrative partners and pay reduced fees.


Health Savings Accounts (HSA)


With an HSA, your employees have their own tax-advantaged savings accounts to save for qualified medical expenses.

The advantages of HSAs include:
  • Accounts belong to employees and are portable
  • Both employers and employees can contribute to their HSAs tax-free up to certain limits
  • Funds can be used to pay for qualified medical expenses now and in the future
  • Unused funds can be invested and rolled over from year to year, even during retirement
  • All contributions and interest earnings, and withdrawals used for qualified medical expenses, are free from income taxes — a triple tax benefit

A Health Reimbursement Arrangement (HRA)2


An HRA is a plan that employers make to reimburse employees for a certain amount of qualified medical expenses incurred during the year. HRAs are entirely funded by the employer and are not portable.

The advantages of HRAs are that they:
  • Provide tax benefits to employers
  • Lower out-of-pocket expenses for employees
  • Lessen the impact of a high deductible and/or high out-of-pocket limits to employees
  • Are available with a broad variety of plan designs

Already have an Employee Benefits Corporation (EBC) HRA? Access your account now Diagonal Arrow


(for use by current HRA customers only)
See how a small business health plan can work for you.

Request a Quote or talk to an agent. Call 877-396-6156
Disclaimers
  • Assurant Health is not engaged in rendering tax advice. Please see a qualified tax professional for tax advice.
  • HRAs are administered through Employee Benefits Corporation (EBC).

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