Wellness and indemnity schemes
No, a wellness plan can't erase your payroll taxes
🚨 Public Service Announcement 🚨 Scammers are EVERYWHERE 🚨
There is nothing in the tax code that lets employers and employees avoid tens of thousands of dollars payroll and income taxes because they send a text message once a month.
If someone approaches you (broker) or your client (employer) and offers:
- thousands in tax savings per employee,
- with increased benefits
- at no costs to anyone,
- through a "clever" trick to a "little-known" IRS procedure
RUN, don't walk, away from them.
Several years back it was The Total Financial Group with their "Classic 105." Dennis and Donna Joachim went to prison for that scam, as did several of their accomplices. Denis got 8 years, and his wife got one year for defrauding people by promising a tax benefit that seemed (and was) too good to be true. Their man in NJ, Josiah David a.k.a. David Lee is also currently in litigation with the SEC for allegedly lying to investors.
Now, there are companies claiming to have figured out a new way to avoid paying payroll and income taxes on vast amounts of funds. They haven't.
These organizations are almost always run by people with little to no legal, tax, or employee benefits education or experience. While disruptors often come from outside an industry with a fresh perspective, it's highly unlikely that a mortgage broker and a digital advertising freelancer will come up with an innovative and correct way to interpret the tax code.
If it seems too good to be true, it probably is. Check your sources and reach out to your trusted advisors.
Don't fall victim to modern-day conmen.
Originally posted on LinkedIn, where the discussion and source links live in the comments.