1. TASC & 40 Square Cooperative Solutions Partnership

2. 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

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

4. 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

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

6. 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.

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

8. 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.

9. 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.

10. 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

11. 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 = $
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 %
Tax Savings $1,750
Total Expenses $17,680
Total Deduction $11,188
Total Tax Savings
$6,492

12. 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

13. 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)

14. 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!

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

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

17. 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!

19. Contact: Dan Pavek Steve Kielman
Steve Kielman
40 Square Contact Info: