The Independent Insurance Agents of Virginia has endorsed Total Administrative Services Corporation (TASC) and Asset Protection Group to help their members and clients. Section 125 plans, which are designed to pay certain qualified expenses (including health insurance premiums) on a pre-tax basis, can help reduce total taxable income and increasing their spendable/take-home income. Funds set aside for flexible spending accounts are not subject to Federal, State or Social Security taxes. On average, employees save from $.25 to $.49 for every dollar they contribute to the flexible spending account. Employers experience tax savings from reduced FICA, FUTA and SUTA taxes on participating employees.
“Small businesses across the Commonwealth including many IIAV member agencies should be able to benefit from instituting a Section 125 plan to help contain some of the runaway health insurance costs,” stated IIAV Chairman Cindy Amick. “We’ve identified some corporate partners who will not only help our member agencies, but then will work with them to present the Section 125 plan opportunities to their small business clients and everyone will benefit financially from this partnership.”
Employees of small businesses – including insurance agencies – who pay all or a portion of their health insurance premiums may benefit dramatically from the institution of a Section 125 plan although the plans can benefit a wide range of health insurance benefit options.
“IIAV is the same as many other small businesses looking for ways to reduce our health insurance costs and implementing a Section 125 Flexible Spending Plan will benefit both our employees and the association itself,” stated IIAV President & CEO Bob Bradshaw. “Moreover, there was significant interest from the legislature this year to promote Section 125 plans for small businesses throughout the Commonwealth as a way to help control some of the health care costs. This new program will first support the business interests of our members, then allow our members to benefit when the plans are presented to their small business clients. It’s a win, win and win.”
While the IIAV office will be immediately implementing a Section 125 Flexible Spending Plan, their corporate partner in this program – TASC – will be conducting education programs throughout the state to explain how member agencies can implement a similar program in house and to work on how member agencies may present the program to their small business clients. In addition, Asset Protection Group will work with IIAV member agencies to present the advantages of a Section 125 plan to their small business clients.
“We’re looking forward to working with our IIAV member associates, as partners, in the presentation of these plan advantages to small businesses,” stated Monty Dise, President of Asset Protection Group. “We understand that these programs can be somewhat complicated but the benefits are enormous and by working with TASC many of the administrative hurdles have been handled. This is a way for IIAV members to not only make additional income, but to provide an extremely valuable service to their small business clients.”
Founded in 1898, IIAV is part of the nation’s oldest and largest associations of independent insurance agents, representing a network of more than 300,000 agents and agency employees nationwide and over 7,000 in the Commonwealth of Virginia. Its members are insurance businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents offer all lines of insurance – property, casualty, life, health, employee benefit plans and retirement products. Web address: www.iiav.com and nationally www.independentagent.com