Speed of service is key when setting up disaster relief to employees of small businesses. The federal government allows employers to replace or supplement part of taxable salary with tax free disaster relief payments. Each dollar sent through a disaster relief plan saves up to $.40 in total payroll and income taxes. That savings allows employers and employees to make available cash flow go further during the crisis.
WHO IS ELIGIBLE: All businesses are eligible but Freedom Benefits limits service to small businesses with less than 500 employees.
PURPOSE: The plan is intended to make direct payments from an employer to its employees that are not subject to the usual wage and income taxes.
COVERAGE: The coverage, amount, length and plan design is largely up to the employer. The IRS has few restrictions on these types of employee benefits. Your plan adviser will answer any questions and help guide this process.
EXPEDITED SERVICE OFFER: Freedom Benefits announces expedited one day setup for new Section 139 disaster relief plans. The first step is to schedule a planning call with the plan adviser to answer all questions, plan the benefit and authorize the adviser. Initial appointments and plan setup are available are available on same or next business day.
WHAT WE DO: At your option or request, your designated plan adviser will: 1) Plan the benefit with the business owner or representative, 2) prepare prototype plan documents and employee communications, 3) enroll employees, 4) integrate the new plan with the business payroll system, 5) integrate the plan with the employer’s existing health plan, 6) establish accountable plan policies, 7) administer claims. We recognize that every business works a little differently, so the plan is customized to match your employee benefit practices.
COST: Consult and setup fee is $300. The plan administrative cost is $3 per employee per month. Freedom Benefits has a minimum annual fee of $1,000 for all tax, accounting, payroll and benefits services combined for each business client for continued service.
MORE INFORMATION: Information about all of Freedom Benefits plans is available online at FreedomBenefits.org. See our latest blog post titled “Five practical steps in setting up a Tax Free Small Business Section 139 Qualified Disaster Relief Payment Program“.