Section 105 of the US tax code allows sole proprietor and other micro business owners to create their own medical reimbursement plan — and realize the same tax advantages as big corporations. BizPlan is specifically designed to create and administer your reimbursement account for you — simplifying the work required, and keeping you fully in compliance with all regulations. The result is real money—a significant savings on federal, state, and employment taxes.
How BizPlan Works
BizPlan allows you to deduct 100 percent of your family’s health insurance premiums and out-of-pocket medical, vision and dental expenses not covered by insurance. With BizPlan, a self-employed or home based business owner offers an employed spouse a medical reimbursement package. The package covers qualified costs and those incurred by family members—which include you, the employer.
The bottom line? A 100% deduction for your family’s medical costs. Real dollars and real savings — the average plan participant saved $4,200 last year!
BizPlan Offers Real and Significant Tax Savings
- Significant reduction of federal, state, and self-employment taxes (see an example)
- 100% deduction of all health insurance premiums, including long-term care and spouse’s disability policies
- 100% deduction of all uninsured medical, dental, and vision expenses
- Deductions of term life insurance premiums (up to $50,000 in coverage)
BizPlan Also Offers These Unparalleled Administrative Advantages
- Complete documentation and compliance with Section 105 of IRS, DOL, and ERISA
- Efficient processing of eligible expenses — including the NEW Benefits Card that reduces your out-of-pocket expense and streamlines claims processing
- The ability to check your year-end totals on-line or via BizPlan’s voice response system
- Industry-exclusive Audit Guarantee
- Our 15+ years of experience in administering these plans brings valuable insights and streamlined procedures
- Comprehensive updates of changes affecting your Plan
- Support and guidance via a toll-free hotline
- Timely mailing of year-end summary statements which are required for tax preparation
Carolyn Anderson, Solo-E.com Subscriber and Biz Plan Participant
My accountant recommended BizPlan about 5 years ago and it has been one of the best business decisions I’ve made. I save about $4000 – $5000 dollars on taxes each year. The plan covers all health care costs even alternative medicine as well as exercise, supplements, and massage with a physician referral. There is some paperwork and there are a few records to keep, but it is not bad and well worth the time it takes to maintain those records. BizPlan’s audit ensures all my deductions comply with the law. If you qualify for the plan, be sure to take advantage of the savings.
- Complete the necessary tax forms, working with your tax advisor, if applicable
- Formalize the employment relationship with your spouse
- Establish a checking account for your spouse or family that is completely separate from your business account
- Reimburse eligible employees for family medical insurance premiums, out-of-pocket medical expenses, and other qualified expenses
- Send one form per employee to TASC/BizPlan for our review at year-end
- Keep good records for your business, separate from your personal accounts
BizPlanNow Features and Examples
Frequently Asked Questions
What does AgriPlan/BizPlan offer?
AgriPlan (for farmers) and BizPlan (for small business owners) are available to business owners across the US. Sole proprietors, corporations, limited liability companies, and partnerships utilize the administrative services of AgriPlan/BizPlan to save substantial tax dollars annually. AgriPlan/BizPlan services allow businesses to deduct 100 percent of their family health insurance premiums and out-of-pocket medical, vision, and dental expenses not covered by insurance.
Who qualifies for AgriPlan/BizPlan?
To qualify for AgriPlan or BizPlan, a business owner must be able to legitimately employ his or her spouse. (For corporations, family employment is not necessary.) Those who qualify include sole proprietors, partnerships, limited liability companies and corporations (including sub-chapter S corporations).
How does AgriPlan/BizPlan work?
The spouse becomes an employee in the business. The business owner provides the employed-spouse a compensation package that includes a reasonable wage for necessary business duties and a benefit package that includes reimbursement of health care expenses. These expenses are now a business expenses and are 100 percent deductible.
How much will I save?
The average AgriPlan/BizPlan participants save more than $4,200 annually in taxes.
How much does it cost?
AgriPlan/BizPlan cost for most businesses is <$500 per year, depending on how many employees you have. Receive a 100% refund of your enrollment fee if you do not deduct at least $2,000 in a Plan year.
How much time does it take to set up and maintain the Plan?
Setting up an AgriPlan/BizPlan is very easy. You simply enroll in the Plan, employ your spouse by establishing a compensation package and reimburse your employee’s medical expenses. Annual duties include submitting benefit expenses to AgriPlan/BizPlan for review, renewing your Plan and re-electing your benefits. AgriPlan/BizPlan provides all the required documents and forms and toll-free support.
Why do I need AgriPlan/BizPlan?
AgriPlan/BizPlan, developed in 1986, simplifies the accounting procedures and provides the administration and documentation required to maintain a proper Section 105 Plan. That includes a Plan Document, an Adoption Agreement, a Required Summary Plan Description, an annual Documentation of Benefits Paid and a Third Party Adjudication of Claims. AgriPlan/BizPlan also offers an Audit Guarantee to all Participants.