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How Bill learned about the Core 125 Plan Document Package

Name: Core Documents
Brand: Core Documents
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Bill is happy. His company has grown, and he can finally offer group health benefits to his employees.

Bill was so happy. He ran the numbers and found that his team was producing so well, he could finally afford to offer a basic group health insurance plan. He shopped around and found a policy that fit his employees’ needs with premiums that were affordable.

The insurance broker sold him the policy, got the necessary forms completed by the employees, and gave Bill the information he needed to send to the payroll company.

The payroll company processed the employees’ share of the premium as a pre-tax deduction from gross pay and Bill paid the insurance company every month without fail.

Everyone was happy now. The employees had health coverage plus their share of the premium was reduced by a fair amount of pre-tax savings (as much as 40%). Bill saved immediately in payroll taxes on the pre-tax dollars plus looked forward to deducting his part of the premiums from the company’s tax bill at the end of the year.

Fast-forward about a year and a half, and Bill gets a notice for a routine IRS tax audit. Confident in his bookkeeping, Bill welcomed the auditor with a smile.

After several days spent looking through the books, the auditor approached Bill with a preliminary report that everything looked good. Then, he asked Bill to produce the company’s Section 125 Plan Document.

To which Bill answered, “Huh?”

The auditor told Bill about Section 125 of the Internal Revenue Code that allows employees to pre-tax health insurance premiums under a Section 125 Premium Only Plan.

Bill learns he needs a Core 125 Plan Document to legally pre-tax employee health insurance premiums under a Section 125 POP.

He also told Bill about the potential reclassification of salary deductions to taxable income, back taxes due, and possible interest and penalties that can be assessed upon employers in violation of the Code’s requirements that – before taking a single pre-tax dollar for premiums – the employer must have a Section 125 Plan Document in place and distribute a copy of the Summary Plan Description (SPD) to every employee eligible to participate in the plan. That’s on top of back taxes owed plus penalties and interest.

As soon as the auditor left, Bill called his lawyer. As soon as he hung up with his lawyer, Bill did a quick search on the Internet for, “Section 125 plan document.”

After the audit, Bill calls his lawyer; then, he goes online and discovers the Core 125 Plan Document package.

Imagine how surprised Bill was to learn that for only $99, he could have purchased the Core125 Plan Document package from Core Documents. Had Bill known to do this beforehand, he would have had the Section 125 POP Plan Document in place to show the auditor. And he wouldn’t have a potentially huge tax debt with heavy fines hanging over his head today.

Why didn’t anyone tell Bill about the Section 125 Plan Document requirement to pre-tax benefits when he put the plan in place?

Bill doesn't understand why someone didn't tell him about the Core 125 Plan Document package before the audit.

Don’t be like Bill. If you aren’t sure you have a Section 125 Plan Document in place, get in touch with Core Documents today.

We can have your Core125 Plan Document package back to you within 1 business day* or less when you use our secure online ordering system. You just open the .pdf file that arrives in our email, print the document, review and sign it, give a copy of the SPD to every plan participant and then file it all away.

That’s really all there is to it. There is no requirement to file the document with any agency, but you do have to have it on hand and handy.

Our secure online ordering system leads you through the set-up process step-by-step. If you have any questions along the way, give us a call or drop us an email.

Start your Core 125 Plan Document package on its way to you by clicking this button:

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*As said earlier, most Core125 POP document packages go out within one business day; however, keep in mind that December, January, and February are our busiest months of the year. Plan documents are processed in the order they are received. The Rush Order fee ($25, available on our order form) simply brings your document to the top of the stack to be processed immediately.

Refund Policy: Purchaser understands that goods and services provided by Core Documents, Inc. are non-refundable. Orders cancelled prior to shipping are subject to cancellation fees that are applied to the cost of goods and services provided during the review, draft, and preparation of your order.

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