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Enabling Connections
With Ease
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SECTION 125
AMERAPLAN has simplified managing your Section 125 by using a convenient prepaid Visa card that enables employees to pay for qualified healthcare, dependent care, transit, and parking expenses with pre-tax dollars, all while using just one card.
SECTION 125
Save An Average of $300 Per Employee in Payroll Taxes While They Take Home More Pay
Section 125 of the IRS Code permits you to pay designated expenses on a pre-tax basis, and a Section 125 Plan is designed to help you take advantage of this legislation. You can now use pre-tax dollars to pay many of the benefit costs that you have paid for with after-tax dollars, reducing the amount of income taxes that you pay. Employees save on federal, FICA and, in certain areas, state and local taxes. Reduced taxes mean more spendable income! At the beginning of each plan year, you simply select from the available coverage’s and determine how much you want to pay toward each one. Those amounts are pro-rated over the year's time and then deducted at each pay period.
What is IIAS?
The IRS approved Inventory Information Approval System (IIAS) is a point-of-sale technology in which retailers auto-substantiate eligible healthcare expenses at the point-of-sale terminal enabling real-time purchases using flexible spending accounts.
As of January 1, 2008, the IRS is requiring all supermarkets, discount stores, grocery stores, wholesale clubs and mail-order merchants to implement IIAS. Healthcare related items will then be identified at the time of purchase to ensure your employee’s Debit Card is used only to pay for prescription drugs, qualified over-the-counter items and general healthcare expenses. If your employees try to buy ineligible IIAS items with their Debit Card, or try to use their Debit Card at non-participating IIAS merchants, they will be asked for another form of payment.
IIAS Compliant Providers
- Grocery Stores
- Convenience Stores
- Warehouse clubs
- Mail order pharmacies
- Healthcare
Benefits of IIAS
- Fewer “pay and chase” follow ups
- Fewer participant phone calls
- Increased employee satisfaction
- Decreased manual claims
Why Our Section 125?
- Convenience and efficiency of a single card for all accounts
- Automated repayment of ineligible purchases
- Real-time balances (based on holds, not settlements)
- Multiple pharmacy options
- Overflow accounts for accommodation of post tax funding
- True auto-substantiation resulting in fewer manual claims
- SureTrak - A user friendly web-based portal for comprehensive account management
- Increased tax savings and employee satisfaction
- Marketing support for increased employee participation and greater competitive advantage
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