Supplemental coverage without the financial stress
A custom payroll accounting software is now being utilized by northern Nevada employers to fund a benefits bank to pay for employees’ secondary, or supplemental, benefits coverage.
“Business owners love it because it puts them in the modern world,” said Warren Rund, owner of Employers Business Solutions, talking about a program that not only helps employers save money but also serves as an attraction and retention tool.
It is called a defined benefits program and Rund his team use a proprietary software combined with IRS Sections 125 and 105 to help clients maximize payroll tax savings, which fund supplemental coverage like disability, accident and life insurance policies.
The unique pre-tax deduction can put $600-$700 per employee into a supplemental benefits program, he said. “There is no reduction in their take home pay,” he added of a program that he has been doing for over a decade, but it was time consuming and generally geared for larger employers and unions.
Advances in technology now make the program feasible for small and mid-sized employers.
“The employer saves on payroll taxes as well, which is a net gain for them,” said Rund, who has been in the employee benefits industry for 33 years. He moved to Reno five years ago from his native Oregon.
Rund said it is easy to get local employers to consider his business pitch because they don’t have to make any changes in their brokers or health plans. “It just enhances what they are currently doing,” said Rund.
“We are an enrollment company,” said Rund. “We work with brokers to not only help with enrollments, but to help them fill in gaps that (their client) companies have. He also reaches out to CPAs and business attorneys to let them know of the tool to bring more value to their clients.
“Around here it’s rare to get new ideas on how to improve our benefit offering while saving us money. This program greatly enhances our existing benefit program; the staff all love it,” said Cindy Morris of Landmark Industries.
“It was time to get rid of the ‘old school’ benefit ideas and embrace what the modern world is doing” said Josh Smith of JT Consulting. “To find good people and keep them, we must have an up-to-date benefits package.”
Rund said Employers Benefits Solutions operates on a commission system. “Our business is growing by leaps and bounds — probably a fourfold increase over last year. “We just brought this to town and I anticipate we will be very busy with this for many years out.”
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Heather Ashbridge, who started with Nevada State Development Corporation in 2008, previously served in several roles with the organization, including assistant vice president and loan officer. She is based in NSDC’s Reno office.