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How about giving your employees a raise that costs you nothing?

Do you currently have an individual medical insurance?

Are you thinking of purchasing a policy?

Did you know that you could pay this through payroll deduction and save money in the process?

Here’s how taking advantage of a Canal HR Section 125 Cafeteria Plan can put money back into your employees’ paychecks. In the following example, an employee makes $500 a week in salary. Your portion of medical expenses is $80.77 a week. By using the Section 125 Plan to deduct insurance pre-tax, you get over $76 back in his check per month!

 

Section 125 Advantage Example:

Weekly Salary                     $500.00

–  Weekly Taxes  $108.75

Net Pay                               $391.25

–  Medical                          $80.77

Take Home Pay                   $310.48

 

With Section 125 Plan*

Weekly Salary                     $500.00

–  Medical                          $80.77

Net Pay                               $419.23

–  Weekly Taxes                 $91.18

Take Home Pay                   $328.05

*For demonstration purposes only

 

There are many more ways we can help you with changes involving payroll and healthcare legislation. Please set up an appointment with one of our representatives to see how we can serve you.