Bucks Montgomery Physician Winter 2021 - 13

Protect Your Business and
Select Employees

For a small business, a key employee's disability
can impact the company's bottom line. However,
if you choose to continue paying that employee's
salary without having a pre-existing plan in place, tax
reporting issues may arise as the Internal Revenue
Service (IRS) would generally not recognize those
payments as a business expense. A Qualified Sick
Pay Plan (QSPP), which is recognized by the IRS
and can be funded with DI, sets company policy
before a disability occurs. Funding a QSPP with DI,
you transfer the risk of a portion of that employee's
salary to MassMutual. The owner can choose which
employees will be included in a QSPP, making it
ideal for family businesses looking to offer disability
income protection for non-owner family members.

Fund Buy-Sell Agreement

If your business has multiple owners, you can
use DI to fund a buy-out option if one partner
becomes disabled, allowing for an orderly
transition of ownership. Additionally, this allows
the insurance carrier to serve as an objective
third party to determine whether a disability
has occurred. If you're in a partnership that has
an existing buy-sell agreement, it's important
that you review the agreement to ensure that
disabilities are addressed and funded.

Cover Business Overhead Expenses

As a business owner, you have expenses to pay and
obligations to meet. So if you were to become disabled,
the future of your company could be in jeopardy.
However, with a business overhead expense (BOE)
disability policy in place, the business can continue to
operate even while you are unable to work. A BOE
policy can help by paying a portion of overhead
expenses, such as leases and salaries, in the event of
a business owner's disability. Premiums for a BOE
policy are generally tax deductible and the benefits
paid, which are subject to taxation, are used to pay for
expenses that are commonly tax deductible.	

Employee Benefits for All Shapes and Sizes

MassMutual offers a comprehensive suite of employee
and executive benefit solutions that includes life
insurance, disability income insurance and retirement
plan services. Learn how our workplace benefit
solutions can help your employees secure their
financial future and protect the ones they love.

Contact Mike Roberts at mroberts@fortislux.com

917-328-4904

BUCKS AND MONTGOMERY COUNTY MEDICAL SOCIETIES

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Bucks Montgomery Physician Winter 2021

Table of Contents for the Digital Edition of Bucks Montgomery Physician Winter 2021
