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Section 125 Cafeteria Plans
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Account Types
Allows employees to claim expenses such as office visits, prescription co-pays, eye glasses, chiropractors, Radial Keratotomy etc. Allowable expenses include the cost of care given to a qualified dependent so an employee and their spouse can work or attend school full-time. Take your monthly premium out of your paycheck pre-tax. Available Services Include: Advantages to the Employer Since taxable income is reduced for each participant, the employers' obligation for Social Security (F.l.C.A.) and Medicare taxes are reduced. With the employer's share of these taxes currently at 7.65% up to $76,200.00 of annual earnings, the savings can be significant.Employers not only save on payroll taxes, but participating employees can enjoy an increase in net spendable income. As plan design changes are made to the employee health benefit plan, Flexible Spending can soften the impact of escalating costs. With Flexible Spending employees have a way to recover some of their increased unreimbursed Medical & Dependent Care expenses. Advantages to the Employee With flexible spending accounts, the greatest advantage to the participants is the tax advantage. Section 125 enables the employee to use before-tax dollars for reimbursement of items that they would otherwise have to spend after-tax dollars on.Please click here here for more information about online enrollment and an interactive demo. Contact Us About Our Section 125 Services |