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. Review the different types of Tax Favored Health Plans and see if the Benefit-Comparison peaks your interest in any of them.
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.