FAQs
Frequently Asked Questions
Unfortunately they do not, only W2 employees qualify for the program.
As long as they are paid as a W2 employee and have less than 3% ownership in the company, they would qualify for the program.
In most cases no they do not qualify for the program, but there are certain scenarios under which the cumulative monthly and annual hours worked by the employee can be taken into consideration by the plan administrator to determine qualifications.
Through a special IRS payroll tax deduction of $950 per single employee and $1,250 per employee spouse and or family. The resulting FICA savings is then used by the employer to cover the monthly costs of the plan benefits.
Section 125, Section 105 & Section 213(d)
No, the employer or employee does not have to pay for a major medical policy. The plan includes a major medical policy called a “MEC” plan that provides a high deductible major medical coverage plan for those employees that have no major medical insurance. The cost of the MEC policy is built into the program.
No, the employer picks a group benefits package that’s made available to all employees. For those higher paid employees, in some cases they will receive additional benefits that won’t be available to the lower paid employees
If the Company decides to change plans and no longer offer a UL policy, the employee has three options; First, the employee actually owns the UL policy and can maintain the policy and they would have to pay the monthly policy premiums to keep the policy active and enforce. Secondly, if the employee does not want to maintain the UL policy, they can request the policy is cancelled and the cash value that built up during the life of the policy, minus insurance carrier surrender fees, will be paid to the employee. Third, the employee can maintain the UL policy and assigned whatever cash value that has built up be used to pay the monthly policy premiums. When the cash value runs out, the employe would have to begin paying the policy premiums out of their pocket or the policy would lapse and be cancelled.
From day one, as soon as cash value starts to build up on the UL policy.
100% of the total UL policy cash value.
