|
It is a
common fact that small business owners do not realize
some of the same tax advantages as corporate employers.
They miss out on considerable savings with respect to
the treatment of health costs. BizPlan offers a means
for self-employed individuals to deduct 100% of their
health costs, given they qualify.
By simply using BizPlan, a self-employed* business owner
may offer an employed spouse a medical reimbursement
package. The reimbursement package covers any costs
incurred by the employee and any family members
(including the employer him/herself). The end result is
a 100% deduction for the employer's family's medical
costs. When using BizPlan, the assistance of your tax
professional is preferred to ensure compliance with the
proper filing of various tax forms.
*BizPlan
also applies to Partnerships, C Corporations,
S Corporations and Limited Liability Companies.
What is BizPlan?
BizPlan is based on Section 105 of the Internal Revenue
Code, Revenue Ruling 71-588 and is supported by Letter
Ruling 9409006. BizPlan provides a system which
simplifies the compliance and administrative procedures
associated with this type of medical reimbursement plan.
With BizPlan, the Sole Proprietor may take advantage of
100% tax deductibility of medical expenses including:
 Health Insurance Premiums
"Qualified" Long Term Care policies
Uninsured Medical, Dental and Vision Care expenses
Other
Deductible Benefits Available:
Term Life ($50,000 max.) and Disability Income
Insurance Premiums for employee (spouse)
Benefits for other employees
BizPlan is
not insurance. Participation in BizPlan is not dependent
on purchasing additional insurance coverage or changing
existing coverage.
BizPlan will assist in providing the tax professional
with an accurate itemization of medical, dental, and
other deductible expenses.
BizPlan will significantly reduce your Federal Income
Taxes, Self-Employment Taxes State Taxes
Getting Started:
Your BizPlan Provider will help you get started by
assisting you with your enrollment and answering any
questions you may have. Here are steps you need to take
to enroll in BizPlan:
Complete an Adoption Agreement.
Formally employ your spouse.
Estimate uninsured medical expenses and list
eligible premiums.
Complete the necessary IRS forms. (Samples are
provided by BizPlan.)
At year end,
submit your benefit expenses to BizPlan for verification
on an Employee Benefit Expense Transmittal provided by
BizPlan. BizPlan will report back to you a detailed
account of your deductible benefit expenses. At tax
preparation time, submit the BizPlan materials to your
accountant or use them to prepare your own return.
BizPlan is not a tax preparer.
BizPlan Administration:
Provides documentation and compliance with IRS,
DOL, and ERISA
Processes eligible expenses
Provides Participants with updates of changes
affecting their plan
Handles questions or changes via its toll free
information and inquiry hotline
Mails year-end summary statements required for tax preparation
BizPlan Audit Guarantee:
BizPlan will
support and assist any enrolled client who has adhered
to our plan procedures and parameters and has an
Employee Benefit deduction challenged by the Internal
Revenue Service. In addition, if all procedures were
adhered to, BizPlan will assume financial responsibility
for any penalty and/or interest resulting from an audit
as it pertains to BizPlan.
Examples of Eligible Medical or
Medical-Related Expenses:
Chiropractors
Dental fees
Drugs and medical
supplies
Hospital bills
Orthodontia
Psychiatric care |
Deductibles
Diagnostic fees
Eyeglasses, including exam fee
Laboratory fees
Physician fees
Vitamins by prescription |
|
