Qualified Businesses

Corporations
Professional Corporations
Not For Profit Organizations and Associations
Partnerships
Joint Ventures

These types of business structures are permitted to set their own annual benefit limits for their employees.

MediDirect® assists management in designing and developing their benefit program. Management is free to choose the benefit levels available for each employee’s Health, Dental and Wellness Benefit Program.

The employer may divide employees into various groups within the corporate structure (e.g. executive, management, full-time, hourly, etc.) and provide different incentives and benefits for each group and for employees who are single or who have dependents.

A popular new option within a MediDirect® health, dental and wellness program is a combined HSA and Wellness Account. One portion of the HSA is allotted to medical, dental or wellness expenses which are reimbursed as non-taxable benefits. The other portion is paid on a "wellness account", which is intended for expenses such as fitness club memberships, golf memberships or athletic footwear. These expenses are reimbursed to the employee but are a taxable benefit. MediDirect® provides administration and adjudication of claims, determines whether the expense are non-taxable or taxable, and provides full accounting to the corporation at year-end.

Sole Proprietor

A non-incorporated business, sole proprietorship, has imposed maximum annual limits in the cost-plus portion of their benefit program. They are $1,500 for the owner-manager plus $1,500 for their spouse and dependents over 21 and $750 per dependent under 21. If the sole proprietorship employs non-owner employees, then the limit is the greater of the above imposed limits or the benefit limits you provide to other employees.

For Your Information

Small business owners should be careful in setting up a cost-plus plan that excludes non-shareholder employees. A cost-plus plan for a majority shareholder and principal employee of a corporation that excludes non-shareholder employees should be carefully planned to meet tax deductible eligibility status. MediDirect® would be happy to discuss this situation and we strongly urge anyone setting up a plan that excludes non-shareholder employees to discuss with their tax advisor to obtain proper documentation.