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)
A 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 a FSA. The unique features of a FSA reduce employee taxes as well as employer tax liability. Within a 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