Frequently Asked Questions About the BASE® Business Partner Program

Why should I become a BASE® Business Partner?
By becoming a Business Partner, you will learn first-hand how our products work to the advantage of small business owners. We provide you with every available resource to help you become knowledgeable about our products so that you can help your clients benefit from our services. We can enroll your clients for you or assist you with any aspect of the enrollment process. As a Business Partner, you will be able to offer your clients the tax savings necessary to help combat the skyrocketing costs of health care. The BASE® products add value to the services that you are already providing and will help you build excellent rapport with your clients.

Will I really have enough time to become a Business Partner?
BASE® understands how busy accountants and financial planners can be especially during tax season! We make every effort to ensure that our program is as convenient for you as it can possibly be. We have developed a secure online portal for you to check your clients' tax information if they utilize any of our products. The BASE® Benefit Specialists are always just a phone call or email away to assist you with any questions or concerns you may have. Our Benefit Specialists will enroll your clients in our programs for you. We want you to focus on your business, and we would never allow our products to inconvenience you in any way. We will work with you to ensure that you have all the time you need to focus on your own business.

What about my clients? They are busy too. How can you help me reach them?
BASE Benefit Specialists are always available to help reach your clients with information about our products.

We know that small business owners are busy, and we'll work with you to determine the best method to contact them about our products. As part of the BASE® Commitment, we pride ourselves in our excellent customer service. As a Business Partner, we will go out of way to help you in any way that we can.

How does an HRA deduction differ from the standard deduction on Form 1040?
Many small business owners are able to deduct 100% of their self-employed insurance premiums on the 1040 Federal Tax Return (and possibly their state tax return depending on where you file your state taxes). By utilizing an HRA, small business owners are able to maximize their deduction and save much more than the standard allowance offered on Form 1040. An HRA allows small business owners to save on their federal, state and self-employment taxes by taking the deduction on their business tax return. An example would be on Schedule C line 14 where sole proprietorships take advantage of the savings provided with the HRA. In 2005, our clients who utilized the HRA saved an average of $3,654 on their tax return.

What is reasonable compensation?
When enrolling your small business clients, specifically sole proprietors, BASE® strongly recommends that reasonable compensation be factored into the set-up of the plan. Reasonable compensation is a formula that BASE® uses to determine how much the employee/spouse should be compensated. There are several factors which determine reasonable compensation including how many hours the employee/spouse works on average per week, the rate at which they will be compensated, and the number of pay periods each year. For more on reasonable compensation, please see the Reasonable Compensation PDF in the Resources section of the site.

Can S Corporations use an HRA?
Yes, S Corporations can establish an HRA. For companies with 1-3 employees, check the eligibility requirements on our site or you can refer to the S-Corp Guide in the Resources section for further information.