Allen Insurance and Financial will help you understand the often-baffling world of Flex Benefits, or Cafeteria Plans, and reduce the cost of medical, life, disability and dental premiums by reducing tax liabilities for your employees and your business. While you ultimately need to consult with your accountant on tax implications, Allen Insurance and Financial can provide the guidance needed to make that process simpler.
The three basic types of plan are:
- Premium Only Plans
- Flexible Spending Accounts (or FSAs, for medical care and dependent care expenses)
- Full Cafeteria Plans
These Section 125 plans are the only sure-fire method of preserving the nontaxable nature of employer-provided benefits when employees are allowed to elect between taxable compensation and nontaxable benefits.
It’s very important that you have such a plan in place if any premiums are being deducted from payroll on a pre-tax basis.