A key component to retaining employees is providing benefits such as health insurance. This often comes at a high cots for small to mid-sized employers. MyFlex plans provides a cost-effective solution designed to accomodate your employees needs and save you money.
Premium Only Plans AND Full Flex Plan Administration
Put it simply, Section 125 -Cafeteria Plans- are company benefit programs that allow employees to use pre-tax dollars to pay certain out-of-pocket expenses. They are not health insurance plans. Implementing a Cafeteria/Flex Plan can allow your employees to significantly reduce certain expenses they may now be paying.
Premium Only Plans (POP) covers only health insurance premiums, allowing employees to elect to withhold a portion of their pre-tax salary to pay for their premium contribution. This plan is the simplest type of Section 125 plans and requires little maintenance once set up through payroll.
The idea behind Full Flex Plans is quite simple. Each employee enrolled in the plan estimates the amounts he or she pays per year for Insurance Premiums, Medical Expenses such as; deductibles, co-insurance, care, etc. and Dependent Care Expenses. These amounts are divided equally over the year and deducted from every paycheck before taxes are taken out and put into a special account which can be drawn from to cover those expenses.
Using pre-tax dollars to pay for health related expenses—allowing employees to reduce their Federal, State, and FICA taxes. As an Employer you also benefit in lower taxes.
Ask your payroll specialist to put you in touch with our preferred partner.