To simplify our procedures, we are no longer using a PEO to provide our benefits, we are getting our own group benefits. The rest of this page will be updated as we have more details. Our SIMPLE, deferred compensation plan, and Bonus Points are still available as always.
These benefits are available to all of our members, even corporate members. Most of these benefits are a 100% deductible expense subtracted from your division's gross income before we calculate your taxable net profit. Contact us if you're interested and also see our information about joining us.
Elective deferrals - contributions elected by the participant and deducted from pay, rather than paid by the company
IRA - Individual Retirement Account
IRC - Internal Revenue Code (tax laws)
SEP - Simplified Employee Pension, a type of IRA created by IRC §408(k)
SAR-SEP - SAlary Reduction SEP, a type of SEP with elective deferrals
SIMPLE - Savings Incentive and Match PLan for Employees of small businesses and for the self-employed
401(k) - A qualified elective deferral plan created by IRC §401(k)
Cafeteria Plan - A plan created by IRC §125 that allows employees to select a variety of benefits on a pre-tax basis
HIPAA - Health Insurance Portability and Accountability Act
MSA - Medical Savings Account
MSA plan - A high-deductible health insurance plan designed to work with an MSA
PEO - Professional Employer Organization, an employee leasing firm
Our §408(p) SIMPLE-IRA allows totally independent deferrals up to $8K/year. These limits tend to increase annually. The SIMPLE has the advantage of contributions not being limited to 15% or even 25% of your income. You can contribute the full $8K/year even if you only make $8,700/year. We set up our new plan using the IRS 5304-SIMPLE form which allows you to choose your own financial institution, e.g. mutual fund family, brokerage, or whatever, regardless of what our other consultants choose. With the other options mentioned on this page, you can contribute even more as you earn more.
Corporate members (except for the Manager) may also have their own plans and other benefits, independently of the company as a whole. Individual members who are also employees of corporate members can even participate in both plans. We can even help you set this up. Corporate members without benefits are encouraged to participate in our benefit program, of course. Combined total contributions to all plans are subject to various limits depending on the plans chosen. However, we may be able to set these up to allow you to contribute up to $48K/year!
We also have a non-qualified deferred compensation plan, which is a higher-risk plan but has much more flexibility and virtually no contribution limits, in case anyone's interested - it currently accrues over 12%/year interest. We're also assigning Bonus Points (similar to profit sharing plans, stock purchase or stock bonus plans, etc.) to reward our consultants for their hard work over the years; this can help you make even more money as we grow. Those who have been with us the longest will have the opportunity to benefit the most, so the sooner you join us, the better deal you'll get in the long run.
Besides the benefits mentioned above, we have Worker's Compensation and General Liability insurance. We do not carry Professional Liability (Errors & Omissions) insurance at this time, because it is more costly and is not required by most clients, but we could get it when and if appropriate.