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					Tuesday, December 7th 2010
                                 PRESENTERS:
PAUL S. LIM, CFP® AND DARREN B. TODD, CFP®
Darren B. Todd, CFP®
Todd Financial & Insurance Services, Inc.
2020 Camino Del Rio North, Suite 400
San Diego CA 92108
(858) 863-4010 x6227
darren@toddfinancial.com
CA Insurance License# OE61933
Darren is a Certified Financial Planner™ Professional with 17 + years of financial planning and employee benefits
experience. In 1993, Darren originally entered into the financial planning profession as a stock broker and has
since been exposed though practical experience to the diverse array of financial planning concepts. Darren
opened his own employee benefits consulting firm, now known as Todd Financial & Insurance Services, Inc., in
2000 and has grown the business to become a highly respected agency in Southern California. His experience
in designing, implementing and servicing accounts of all sizes has made him a key resource to many
companies, associations and financial professionals throughout the country.
   Wellness programs come in many different
    shapes and sizes and the tax rules that
    apply to them vary accordingly.
   Generally they come in 4 Basic Categories:
    ◦ Education
      Health Risk Assessments (HRAs)
    ◦ Health Assessment Tests
      Blood Pressure, Cholesterol, Blood Sugar
    ◦ Behavior Modification Programs
      Weight Loss, Smoking Cessation
    ◦ Disease Management
      Monitoring Diabetes and other Chronic Diseases
   Plans filed as “Health Insurance Plans”
    ◦ Chiropractic, Acupuncture Benefits
    ◦ Enhancements to Dental and Vision Plans
    ◦ Employee Assistance Programs (EAPs)
   Stand-Alone Incentive Plans
    ◦ Benefit Bank Allowances
    ◦ Health Habits – Encouragement Plans
    ◦ Health Reimbursement Arrangements (HRAs)
      targeting specific preventative care
   Hybrid of both types of plans
   Motivate employees to achieve specific health
    standards through incentives / penalties that
    encourage participation

   There are 3 main incentive types that vary in
    tax efficiency:
    ◦ Cash / Cash Equivalents
    ◦ De Minimis Gifts
    ◦ Premium Offset Plan / Premium Based Incentives
   Examples include Gift Cards, Charge Cards or
    Credit Cards of any amount.

   Always taxable to Employer and Employee

   Cost to the Employer will range from $1.10 -
    $1.35 for every $1.00 in taxable benefits paid
    for the employee to receive $0.60 - $0.75
    after taxes
   Examples include Movie Tickets, Lower Cost Items
    and Inexpensive Sporting Events

   Meals fall into their own category of De Minimis
    Gifts

   Internal Revenue Code is subject to interpretation.
    Please consult your tax advisor

   De Minimis Gifts cost $1.00 for every $1.00 paid
    in benefit
   Premium Offset Plans and Premium based
    incentive plans are the most tax efficient
    wellness incentive.

   Plans will cost between ($0.20) to $0.20 for
    every $1.00 in benefits paid.
   Depending on the design, a wellness program
    may be subject to a broad range of federal,
    state and local laws.

    ◦ Department of Labor
    ◦ Department of Health & Human Services
    ◦ Health Insurance Portability and Accountability Act
      (HIPAA)
    ◦ Americans with Disabilities Act (ADA)

    Please consult your legal advisor.
   Is it necessary for a CA Employer to report
    coverage of non-dependent children as state
    taxable income to the employee?
   Pursuant to IRS Circular 230: Todd Financial &
    Insurance Services, Inc., its agents, and
    representatives may not give tax or legal advice.
    Any discussion of taxes herein or related to this
    document is for general information purposes
    only and does not purport to be complete or
    cover every situation. Tax law is subject to
    interpretation and legislative change. Tax results
    and the appropriateness of any product for any
    specific taxpayer may vary depending upon the
    facts and circumstances. You should consult
    with and rely on your own independent legal and
    tax advisors regarding your particular set of facts
    and circumstances.

				
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