Offer a Flexible Benefit Plan!
Section 125 Plans, commonly referred to as Flexible Benefit Plans, are an essential part of any employer group health insurance and ancillary benefits administration program. Section 125 of the Internal Revenue Code allows employees to purchase health insurance and other ancillary benefits tax free. A Section 125 Plan legally allows your employees to pay their portion of medical insurance premium and other ancillary benefits premiums using pretax or tax-free dollars.
Both Employers and Employees Benefit from a Section 125 Plan. Employees avoid paying any tax (FICA or income) on premiums and deductions through a Section 125 Plan. Employers that offer a Section 125 Plan benefit by eliminating the 7.65% matching FICA taxes on every dollar deducted from employee wages through a Section 125 Plan. To calculate your estimated savings.
The ONLY Benefit That Can Actually SAVE Money!
With a flexible benefit plan, employees can turn “after tax” expenses to “pre-tax” expenses for items such as health care premiums, out-of-pocket medical expenses and dependent care. Employers also save money by reducing their payroll tax expense for FICA and Medicare matching and FUTA taxes. On average, employees with flexible benefit plans save $300 per year in payroll taxes.
Online Account Access
When your flexible benefit plan is administered by FlexChecks, employees have online access to their
flexible benefit account anytime, anywhere!