ProfitTOOL is a field-proven tool reimbursement program authorized under Internal Revenue Code section 62(c), "Accountable Plan" rules. ProfitTOOL is designed to reduce employer payroll related expenses while increasing employee take home pay. For employees that must provide and maintain their own tools, such as automotive, marine, trucking, RV, motorcycles and aviation, the benefits for the employers and employees can be significant. ProfitTOOL Plan, Inc. is the administrator of the ProfitTOOL Product which enables participating employees to receive a separate tool reimbursement check, which is exempt from payroll taxes, in addition to their employment check. The sum of the two checks is greater than an employee's previous single paycheck. ProfitTOOL is fast becoming the industry standard because of their well documented and conservative accounting solution to the reimbursement methodology.
Smaller taxes and bigger paydays... the ProfitTOOL Way
In an economy when employers are searching for a proven way to reduce payroll related expenses, the ProfitTOOL way is the right plan for the job. Since 1988, tool reimbursement plans have provided companies an innovative method of controlling expenses in an extremely competitive environment. It is recognized and accepted as the industry standard that under current payment plans, all technicians that use their personal tools to perform their duties are being paid for the availability of their tools as part of their total compensation. Such a payment method is considered paid under a non-accountable plan. ProfitTOOL established a method of properly accounting for and separating the payment into an "accountable plan". The separation of time and skill from tools and equipment under the ProfitTOOL program, establishes a more accurate allocation for services and a reasonable reimbursement rate for employee business expenses. Because the tool reimbursement checks are not subject to taxation, the net results are an increase in the technician's take home pay. In addition, the company saves on the matching payroll related expenses. All this with ZERO out of pocket costs to the employer or the employee.
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