New Defined Contribution Starter Kit for Small Businesses

Written by: PeopleKeep Team
Sep 17, 2012 5:00:00 AM

Free Starter Kit Helps Business Owners & Office Managers Understand Defined Contribution Plans

Zane Benefits, which provides businesses with web-based defined contribution plans and health reimbursement accounts, today released a new starter kit for small businesses.small business health insurance

Defined contribution plans are a new solution for small businesses who do not offer health insurance due to high cost or participation issues. Additionally, defined contribution plans can provide an affordable alternative for companies terminating a group health insurance policy.

According to Rick Lindquist, President of Zane Benefits, "50% of small businesses do not offer employee health benefits because they do not know a defined contribution option exists. We are on a mission to educate every U.S. small business on this new concept."

With a defined contribution plan, a small business can fix its health insurance costs, while maintaining 100% of the tax advantages associated with traditional group health insurance.

Lindquist goes on to say, "Rather than paying for a group health plan (a 'defined benefit'), the business sets a 'defined contribution' for employees to use toward reimbursement of individual health insurance premiums and medical expenses."

According to the Zane Benefits website, both businesses and employees benefit from defined contribution plans.

Employees Benefit From:

Tax Advantages – All reimbursements are 100% tax-free to the employee.

Choice – Employees are able to choose an individual health plan that best fits their family’s needs.

Portability – Employees keep their individual health plan when they terminate employment.

Increased Compensation – Employees value defined contributions at up to 2x the value of an identical salary increase.

Small Businesses Benefit From:

Tax Advantages - All reimbursements are 100% tax-deductible the business.

Cost Savings – Small businesses fix their costs on a monthly basis.

Time – Administration takes less than 5 minutes per month.

Recruiting and Retention – A health benefits program makes it easier to recruit and retain key employees.

Information on the Starter Kit

This is the first defined contribution starter kit specifically crafted for the small business. Businesses that download the kit will receive the following:

  • A Guide to Defined Contribution Plans

  • A Whitepaper on Health Reimbursement Arrangements

  • A Webinar & Slideshow on How to Convert to Defined Contribution

  • A Slip Sheet Outlining Eligible Items for Defined Contribution Plans

  • A Free 30 Day Trial of Zane’s Defined Contribution Software

Download the Kit Now!

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About Zane Benefits, Inc.

Zane Benefits, Inc., a software company, helps insurance brokers, accountants, and employers take advantage of new defined contribution health benefits and private exchanges via its proprietary SaaS online health benefits software. Zane Benefits does not sell insurance. Using Zane’s platform, insurance professionals and accountants offer their clients a defined contribution plan with multiple individual health insurance options via a private health exchange of their choice.

Topics: Defined Contribution Health Plans, Small Business, HRA

Additional Resources

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