Flexible benefit plans, also known as cafeteria plans or Section 125 plans, offer employers payroll tax savings. They allow employees to set aside money pre-tax to pay for health insurance and various medical and dependent care expenses.
Pre-tax flexible benefit plan options include:
Premium only plans, also known as POP, reduce tax liabilities for both the employee and employer. The plan allows employees to pay for medical, dental and vision insurance premiums on a pre-tax basis. Employers can benefit from reductions in Social Security and Medicare taxes and employees can save on federal, state and city income taxes.
Flexible Spending Accounts (FSA)
An FSA allows employees to set aside a designated amount from each paycheck pre-taxed. Funds set aside are used to reimburse employee’s medical, dependent care and other qualified expenses.
One of the easiest ways to enhance your employee benefit plan is by offering an FSA. The unique features of an FSA reduce employee taxes as well as employer tax liability. Within an FSA, there are four options employers can offer participants:
1. Medical Reimbursement Accounts
2. Dependent Care Reimbursement Accounts
3. Adoption Assistance Accounts
4. Premium Reimbursement Accounts
Through Bukaty Companies online system, FSA/HRA participants have the ability to:
- Obtain FSA account balances online
- Obtain HRA account balances online
- Review claims status online
- File a claim online
Debit Card Option
- Office visit co-pays
- Deductible-related expenses
- Eligible over-the-counter items