Enhanced benefits for Executives and Cost-containment for Employers
Added non-Taxable Compensation
CostPlus Plans can be designed to provide added non-taxable compensation for Executives, by providing an extensive range of benefits (without spending limits) for specific Executive Classes.
For example, at $60,000 of Net Income and a Marginal Tax Rate of 40%, an Executive would need to receive $1,667 added income to retain $1,000 for Medical Expenses - or a $667 Tax "penalty".
With a CostPlus Plan, Medical Expenses are returned "tax free" to the Executive. The Employer's expense is the $1,000 cost, plus a 10% Processing Fee plus 8% Sales Tax and 2% Premium Tax.
CostPlus Health and Dental Programs can reduce Benefit Expenses 20 to 40 percent (or more)
