With healthcare and other benefits costs skyrocketing, you have to find ways to save. And through Section 125 of the IRS tax code, it’s a win-win. You can effectively give your employees a raise while you lower taxes – theirs and yours – with a Premium Only Plan (POP) or a Flexible Spending Account (FSA).
CBIZ Flex-Pay provides Section 125 Administration to clients interested in saving tax dollars for themselves and their employees. Through the POP plan, employees pay their insurance premiums pre-tax, reducing their gross taxable income, which saves them FICA, Federal, and State taxes. This also provides a tax savings for the employer. CBIZ Flex-Pay creates a POP document based on a questionnaire you complete.
The Flexible Spending Account, or FSA, provides employees an avenue to set aside a portion of their pre-tax wages for their medical, dental, and dependent care expenses. Employees and their spouses can use a FSA debit card to pay for these expenses (receipts not normally needed), or they can be reimbursed by direct deposit or live check on a weekly basis when they submit receipts.
Section 125 Plan
Clients using Flex-Pay’s Flexible Spending Account (employer and/or employee funded), below is the form submitted for expense reimbursement:
Section 132 Plan
Contact us at CBIZ Flex-Pay for details about this benefit: 336-714-1208.