FLEXIBLE BENEFIT
(CAFETERIA) PLAN SERVICES
Your employees can
reduce their taxable income and avoid paying Social Security
and Medicare tax (7.65%) and Federal
income tax (15% to 40%) by enrolling in your company-sponsored
Flexible Benefits Plan. (The Social Security and Medicare
tax savings are realized by the company, as well). The employee
tax savings can apply to one or more of the following options:
- Premium Conversion
Accounts allow for your EMPLOYEES’ SHARE
of qualifying group insurance premiums to automatically
be deducted from their pay with TAX-FREE dollars.
- Health Care Flexible
Spending Accounts allow your employees to pay for health
care expenses for themselves and their
immediate family members which are not otherwise covered
for specialized
services such as dental, vision, etc. (and even those deductibles
or “co-pays” which are the patient’s responsibility)
with TAX-FREE dollars.
- Dependent Care Flexible
Spending Accounts allow your employees to pay for day-care
or dependent care expenses up to $5,000
per year TAX-FREE.
How your
employees save taxes….
When employees participate in a flexible spending account
through salary reduction, they reduce their Federal; FICA;
Social Security;
Medicare; and, in some cases, state taxes and increase
their take-home pay. The money that is deposited into their
Flexible
Spending Accounts comes straight out of their gross pay,
thereby avoiding taxes. Click
here to see a sample tax
savings illustration.
We design and prepare Plan Documents for both Premium Only
plans and full Flexible Spending plans; while providing
amendments for these plans as required. We also administer
flexible
spending plans, process monthly claims for reimbursement,
maintain accurate
records of participants’ claims and account balances,
and provide necessary underlying forms.
If you have any additional questions about our services
for these types of plans, please contact
us.
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