Flexible Benefit Plan Administration

Section 125 Plans are an essential part of any employer group health insurance and ancillary benefit program. Section 125 of the Internal Revenue Code allows employees to purchase health insurance and other ancillary benefits tax free. A Section 125 Plan legally allows your employees to pay their portion of medical insurance premium and other ancillary benefits premiums using pretax or tax-free dollars.

Both Employers and Employees Benefit from a Section 125 Plan. Employees avoid paying any tax (FICA or income) on premiums and deductions through a Section 125 Plan. Employers that offer a Section 125 Plan benefit by eliminating the 7.65% matching FICA taxes on every dollar deducted from employee wages through a Section 125 Plan.  To calculate your estimated savings, click here.

Employee Contribution Plans:

Premium Only Plan, generally referred to as a POP Plan is a written plan document that allows employers to deduct premium contributions from employees on a pre-tax basis through salary reduction.  Premiums may be for health insurance, dental insurance, vision insurance, accident insurance, and cancer insurance, etc.  In addition, employee contributions to a Health Savings Account may also be included in your POP Plan.

Premium Only Plan with HSA, all of the benefits of a POP Plan with the added ability to deduction contributions to a Health Savings Plan on a pre-tax basis through salary reduction.  

Health FSA Plan is a written plan document that allows employers to deduct premium contributions as a POP Plan does, but also allows employers to deduct out-of-pocket medical expenses on a pre-tax basis through salary reduction.  

Limited-Purpose Health FSA Plan is a written plan document that allows employers to deduct premium contributions as a POP Plan does, but also allows employers to deduct out-of-pocket dental and vision expenses, as well as medical expenses that exceed the employees deductible on a pre-tax basis through salary reduction.  A Limited-Purpose Health FSA Plan is used when the employer also offers a Health Savings Account (HSA).   

Dependent Care FSA Plan is a written plan document that allows employers to deduct premium contributions as  POP Plan does, but also allows employers to deduct out-of-pocket dependent care expenses on a pre-tax basis through salary reduction. 

Individual Insurance Premium FSA Plan is a written plan document that allows employers to deduct individual insurance premiums on a pre-tax basis through salary reduction.  The individual insurance premiums are for insurance that is generally billed to the employee directly and not part of a group plan.

 

Employer Contribution Plans:

Health Reimbursement Arrangements, generally referred to as HRA's, are defined contribution plans that are owned and controlled by employers for the benefit of employees.  The are 100% funded by employers.  HRA's offer many plan design options that allow employers to meet their benefit goals.

 

Flexible Benefit Plan Administration

Section 125 Plans are an essential part of any employer group health insurance and ancillary benefit program. Section 125 of the Internal Revenue Code allows employees to purchase health insurance and other ancillary benefits tax free. A Section 125 Plan legally allows your employees to pay their portion of medical insurance premium and other ancillary benefits premiums using pretax or tax-free dollars.

Both Employers and Employees Benefit from a Section 125 Plan. Employees avoid paying any tax (FICA or income) on premiums and deductions through a Section 125 Plan. Employers that offer a Section 125 Plan benefit by eliminating the 7.65% matching FICA taxes on every dollar deducted from employee wages through a Section 125 Plan.  To calculate your estimated savings, click here.

Employee Contribution Plans:

Premium Only Plan, generally referred to as a POP Plan is a written plan document that allows employers to deduct premium contributions from employees on a pre-tax basis through salary reduction.  Premiums may be for health insurance, dental insurance, vision insurance, accident insurance, and cancer insurance, etc.  In addition, employee contributions to a Health Savings Account may also be included in your POP Plan.

Premium Only Plan with HSA, all of the benefits of a POP Plan with the added ability to deduction contributions to a Health Savings Plan on a pre-tax basis through salary reduction.  

Health FSA Plan is a written plan document that allows employers to deduct premium contributions as a POP Plan does, but also allows employers to deduct out-of-pocket medical expenses on a pre-tax basis through salary reduction.  

Limited-Purpose Health FSA Plan is a written plan document that allows employers to deduct premium contributions as a POP Plan does, but also allows employers to deduct out-of-pocket dental and vision expenses, as well as medical expenses that exceed the employees deductible on a pre-tax basis through salary reduction.  A Limited-Purpose Health FSA Plan is used when the employer also offers a Health Savings Account (HSA).   

Dependent Care FSA Plan is a written plan document that allows employers to deduct premium contributions as  POP Plan does, but also allows employers to deduct out-of-pocket dependent care expenses on a pre-tax basis through salary reduction. 

Individual Insurance Premium FSA Plan is a written plan document that allows employers to deduct individual insurance premiums on a pre-tax basis through salary reduction.  The individual insurance premiums are for insurance that is generally billed to the employee directly and not part of a group plan.

 

Employer Contribution Plans:

Health Reimbursement Arrangements, generally referred to as HRA's, are defined contribution plans that are owned and controlled by employers for the benefit of employees.  The are 100% funded by employers.  HRA's offer many plan design options that allow employers to meet their benefit goals.