TASC & 40 Square Cooperative Solutions Partnership

Partnership Details 40 Square must require potential members to have a minimum of one “Common Law” employee TASC chosen after significant vetting to help simplify this process TASC programs also offer potential additional savings for members Commissions earned for each client that enrolls in their services  

Objectives What is Section 105 / AgriPlan? What are eligible medical expenses? How does AgriPlan work? Who qualifies? Why sell AgriPlan?

What Is Section 105? Section 105 is a 1954 tax law that allows for health insurance and out-of-pocket expenses to become a tax deduction. The employer can reimburse a qualifying employee for personal and dependent family medical expenses. Tax Free to EE / Tax deductible to ER

What are Eligible Expenses? Health Insurance Premiums Cancer Insurance Premiums Long-Term Care Premiums Dental Insurance Premiums Term Life and Disability Insurance Premiums

Eligible Expenses… Out of Pocket Medical (OOP) Dental (routine exams, orthodontics, etc) Vision (glasses, contacts, check-ups etc.) Doctor Co-Pays / Deductibles Prescriptions Medical Supplies Chiropractor Etc.  

Who Qualifies? Sole Proprietor (Schedule C and F) S Corporation C Corporation Partnership LLC Non-Profit

How Does AgriPlan or BizPlan Work? Legitimate Employment Employee who receives a W-2 wage. Necessary Duties Employee performs necessary duties for the company. Reasonable Compensation Compensation is paid to the employee that is reasonable for the type of duties he or she performs.

How Does AgriPlan or BizPlan Work? Jack owns Jack Miller Farm. Jacks wife Jill has done bookkeeping, ran for parts and even helped in the field at times. Jack hires Jill and provides compensation: A cash wage ($100 per month) Reimbursement of family medical insurance. Reimbursement of family out-of-pocket expenses.

How Does AgriPlan or BizPlan Work? Jack formalizes the working relationship by providing a written employment agreement. Jack provides a compensation package as follows: Health Insurance Premium $12,680 Medical Expense Reimbursement $5,000 W-2 Wages $1,200

How do I present this to Jack and Jill?? Without Section 105 Premium Deduction Premium = $12,680 Federal Tax Rate $12,680 x 15% = $ 1,902 Tax Savings = $ 1,902 Non-Insured Expenses Out of Pocket Medical = $5,000 Federal & State Tax 0% Tax Savings = $ 0 Total Expenses = $17,680 Total Deduction = $1,902 Total Tax Savings $1,902 With Section 105 Premium Deduction Premium = $12,680 Federal, State & SE Tax Rate $12,680 x 35% = $4,438 Tax Savings = $4,438 Non-Insured Expenses Out of Pocket Medical = $5,000 Federal, State & SE Tax 35% Tax Savings $1,750 Total Expenses $17,680 Total Deduction $11,188 Total Tax Savings $6,492

Can’t I Already Do This? Schedule A Medical expenses that exceed 7.5% of AGI are 100% deductible Average savings $0 Standard Deduction for Self- Employed Health insurance premiums 100% deductible on Federal Income Tax Average savings $1,200 per family Section 105 HRA All health insurance premiums plus all out-of-pocket expenses – 100% deductible on Federal Income Tax, Self- Employment, and State Income Tax Average savings of more than $5,500 per family

What if Jack has hired help? Set employee eligibility requirements to avoid discriminating among employees. Hours worked per week (1-25) Months worked per year (1-7) Employee age (up to 25) New employee wait period (up to 36 months) Current employee wait period (up to 36 months)

TASC’s Responsibilities Answer Questions and Enroll your clients! Customized Plan to best fit the employer Summary Plan Description (SPD) TASC provides a 100% audit guarantee on all plans TASC Card to track medical expenses Local TASC rep to enroll clients and assist with any questions!

Why Sell AgriPlan or BizPlan? Enhance existing Client relationships. Attract more Clients.

TASC’s Responsibilities Agents receive 25% of all AgriPlan/BizPlan fees collected from TASC. Average plan is $427.50 per year Opportunity for bonuses and incentives

What's Next? Client Identification. 3 easy steps! Married Schedule F filer Pay their own health insurance No FT Employees These are an absolute no brainer when they fit!

Contact: Dan Pavek Steve Kielman 608-268-8837 Dan.pavek@tasconline.com Steve Kielman 608-268-8873 Steve.kielman@tasconline.com 40 Square Contact Info: 1-844-205-9579 info@40Square.coop www.40Square.coop