Section 125 cafeteria plans have been part of the Internal Revenue Code since 1978 and have been used by employers for decades. The provisions are long-standing and well established. If you want the long version, read our guide to Section 125 wellness plans for home care agencies.
Some Section 125 wellness plan designs have drawn regulatory scrutiny. The Unify Wellness Plan is structured differently and has been reviewed by ERISA legal and accounting professionals. You can read more about the structure and compliance here.
Yes. Unlike many traditional group health plans, participation is not limited to employees working 30 or more hours per week. Part-time W-2 caregivers may be eligible to participate.
What varies with hours is how much each person gains, not whether they can participate.
It is not new money. Eligible employee contributions are made pre-tax, which can lower the wage base used to calculate FICA. The resulting payroll tax savings help offset the cost of the benefits.
No, and it is not insurance. It enhances whatever coverage you already offer. Keep your broker and your existing policies. For an agency offering no healthcare benefits today, it can provide meaningful everyday healthcare support without replacing major medical coverage. A no-cost MEC plan is available where one is needed.
Most caregivers see the same or slightly higher take-home pay than before. The pre-tax deduction is paired with a post-tax reward in the same paycheck.
Probably not. Qualification depends on wages, filing status and pay schedule. The proposal shows who does and who does not. Non-qualifiers can participate for a reasonable contribution.
To build the analysis we need your last two payroll reports showing gross wages for each employee. No employee names, Social Security numbers, home addresses or health information are required.
Typically between $300 and $900 per participating employee per year (net of administrative fees). Actual savings vary based on wages, filing status and pay schedule.
CBIZ, Inc., a top-seven US accounting firm, wrote the CPA opinion letter. HitesmanLaw, P.A., where Darcy Hitesman has practiced ERISA, Section 125 and ACA law for over 35 years, wrote the legal assurance letter. Both go to you before you sign anything.
The plan is structured under IRS Sections 105, 106, 125 and 213(d) and has been reviewed for ERISA and ACA compliance.
UnifyWell handles caregiver communication, enrollment meetings and questions, which is roughly 95 percent of the work. Your side is payroll code setup with your provider, and giving them access to the roster for enrollment. We will need your help initially to set up communications with your staff.
It may. Workers' compensation premiums are typically calculated on payroll, so a lower wage base can reduce them. We keep this conditional because it depends on your carrier and your state, and we will not present it as a certainty.
Tax law does change, and the plan documents say so plainly. We will not tell you any tax provision is permanent.
UnifyWell pays us a fee based on enrollment. You do not pay us and we are not paid a percentage of your savings.
A proposal is usually back in a day or two. From there, timing depends on your payroll cycle and how quickly enrollment meetings can be scheduled with your caregivers. Most agencies can expect the full process to take about six weeks after we receive the payroll data.
Call Charley at 435-999-5450 or email [email protected].
See the potential savings based on your agency and team.
Open the estimatorHome Care Benefits provides marketing and enrollment support and does not provide legal, tax, accounting or health advice. The Unify Wellness Plan is administered by UnifyWell. Savings figures in any proposal are estimates based on the payroll information provided and are not guaranteed. Federal and state tax laws change. Consult your own CPA or attorney before enrolling.