Section I: Introduction to BASE®

Quiz 4: Where do the savings come from?

1.With the BASE® HRA deductible expenses result in _____ tax savings.

1. Answer: d. All of the above.

BASE® allows clients to deduct up-to 100% of family medical expenses as a business deduction, which allows for federal, state and self-employment tax savings.

2.All medical expenses are adjudicated at year-end to ensure deductibility as required by law and under IRS Code Section ________d.

2. Answer: b. 213d.

All medical expenses are adjudicated at year-end to ensure deductibility as required by law and under IRS Code § 213d.

3.BASE® HRA clients average over _____ in tax savings.

3. Answer: c. $4,500.

Our clients average more than $4,500 per year in tax savings. That's $375 per month of new-found cash you can put in their hands!

4.BASE® HRA clients with 2 or more employee participants are eligible to reimburse health insurance premiums.

4. Answer: b. False.

For clients with 2 or more employee participants Health Insurance Premiums are not eligible, and this includes Medicare.

5.The best candidate for the BASE® HRA is a ________.

5. Answer: a. Sole Proprietor.

The best candidate for the BASE® HRA is a sole proprietor who is married, whose spouse helps out in the business, and who has no additional employees.

6.The BASE® HRA allows employers to take the standard deduction on Form 1040.

6. Answer: b. False.

Typically small businesses only take the standard deduction on Form 1040.
However, when business owners enroll in a Section 105 BASE® HRA, they can deduct both their health insurance premiums* and qualified out-of-pocket expenses on their business tax return.

Congratulations!

You have successfully completed the BASE® Certification program.

You will be receiving a certificate of completion that will be mailed to your Agency Manager’s office.

For further questions, please contact BASE® at 1-877-342-5105 or visit us on the web at www.BASEonline.com.

Thank you for taking this quiz.

Continue to Section II: Chapter 1!