Section 125 And Llc

Momentive Performance Materials Holdings LLC To Open New Business & Technology ...

BANGALORE, India--( BUSINESS WIRE )--Momentive Performance Materials Holdings LLC, a global leader in specialty chemicals and materials, announced today that its subsidiaries, Momentive Performance Materials and Momentive Specialty Chemicals, will open a new regional business headquarters and state of the art Global Research and Development Centre in Bangalore, India.

The new facility will be located on a 2-acre plot in the second phase of Bangalore’s “Electronic City” and will initially house 125 associates. Research scientists based at the facility will work on new technology platforms and product development for new and existing applications in diverse industry segments including personal care, energy, healthcare, electronics, automotive, and construction. In addition, the centre will serve as Momentive’s regional headquarters and will house its commercial and business support functions. Completion of the centre, already under construction, is anticipated for the first quarter of 2012. The Bangalore facility will be a key addition to Momentive’s global network of research and development centres located in key regions to drive innovation for customers.

“This new regional headquarters and research centre represents an important step in our continuing investment in India and demonstrates our commitment to customers in the region,” said Craig O. Morrison, Momentive Chairman & CEO, who is in Bangalore for meeting with customers, governmental officials and the local Momentive team. “India’s world class technical talent, growing demand for new applications based on our products, and strong regional growth opportunities combine to make this a compelling investment opportunity to fuel and support growth.”

Momentive currently has its regional headquarters in Bangalore and manufacturing and warehousing operations in Chennai. India represents one of the fastest-growing regions for Momentive, said Morrison, and is projected to be a key growth area for the company in the future.

Dr Eric Thaler, Chief Technology Officer for Momentive Performance Materials, said: "We are excited that we will be able to provide a world class facility for our scientists here in Bangalore. They are driving tremendous value for our customers through product innovation and new advanced technology platforms, and this new center will help us attract and retain the top talent needed to continue and accelerate these efforts.

Section 125 POP : The Basics

Whether you have a small, mid-sized, or large business, there’s a way to bring down your payroll tax costs and increase employees’ take home pay without sacrificing on their benefits – the Section 125 Premium Only Plan (POP).

What is Section 125 POP Plan?

The Premium Only Plan (POP) is the most basic option of the employee benefits program provided for in Section 125 of the US Tax Code, also known as a Cafeteria Plan. It gives qualified employees the opportunity to make contributions for their health coverage with the use of pre-tax dollars. Health insurance coverage for a POP Plan 125 includes Group Life Insurance, Group Dental and Vision, Group Disability, and Group Life Term.

An Effective Way to Save on Taxes

Because insurance contributions are deducted on a pre-tax basis, a POP Plan saves significant tax dollars for both employees and employers . This is perhaps the greatest benefit that the two parties can gain, and perhaps the most persuasive argument for establishing a Section 125 POP in any business.

For the premiums regularly paid for insurance coverage of employer-sponsored POP Plans, employees can realize savings on Federal Insurance Contribution Act (FICA) tax, as well as other federal, state, and local (if any) taxes. The resulting tax savings, which could be as much as 40% of the premium cost, can then augment employees’ take home pay, or be used to cover the cost of insurance premiums. Should there be a sudden increase in premiums, the tax savings could help cushion the effects such that employees will not see a substantial reduction in their net pay.

Employers on the other hand, are not required to pay the corresponding 7.65% FICA tax, .80% FUTA tax, and depending on the specific state may avoid SUTA or SUI or any state-mandated workers’ compensation tax for the amount contributed by the employee under a Section 125 POP Plan.

Aside from the reduction in tax expenses, a company can also benefit greatly from a Section 125 POP if it currently shoulders the bulk of the employees’ insurance premiums and want to transfer part of the burden of payment contributions to the employees themselves. With the implementation of a Premium Only Plan, employers can do this without having to make a hefty deduction from the employees’ take-home pay.

Employers: Who Are Considered as Qualified Sponsors?