Click to close

Executive Carve-Out

These plans provide coverage to only a select group of employees and are structured so the premiums are a tax-deductible business expense without the business owner having to file a Qualified Sick Pay Plan (QSPP). Executive Carve Out Plans can be Individual Plans, Group Supplement, or Retirement Completion products.

Typically, the business owner “bonuses” the employee for the amount of the premium in the form of salary. This way, the employee receives a tax-free benefit and the employer can take the deduction as a business expense. The employee, however, is required to pay tax on the additional salary as income. See the Multi-Life & Guaranteed Issue Sales file and Sales & Marketing Ideas file in Broker Resources.
Click to close