Many employers have difficulty providing part-time, seasonal and temporary employees with meaningful benefits. At MidAmerica, we have a solution. When MidAmerica formed over two decades ago, we introduced our 3121 FICA Alternative Plan. This solution replaces Social Security and can be designed as a 401(a) or 457(b) plan without affecting Medicare eligibility.
With a FICA Alternative Plan, employers avoid the matching 6.2% Social Security contribution. Instead, employees contribute 7.5% of their wages into an interest-bearing account, on a tax-free basis, giving their money the potential to grow over time. They receive an impactful benefit from their employer, while maintaining virtually the same take-home pay. Plus, their funds are 100% vested, meaning that all contributions to the plan belong to them. All funds are self-directed by the employee, meaning they have increased control over retirement funds.
At MidAmerica, we handle the administration, compliance and education in-house so that employers and employees can rest easy when it comes to their benefits.