Who Can Participate in the Shared Benefits Plan?
Employees of regular corporations, S corporations, limited liability companies (LLCs), partnerships, sole proprietors, professional corporations, and not-for-profits can all reduce payroll taxes by participating in a Section 125 Premium Only Plan. Not eligible are sole proprietors, LLC members (in most cases), partners, or individuals owning more than 2% of an S corporation. But as employers, they can save themselves payroll taxes (7.65%) by sponsoring the Shared Benefits Plan for their employees.