Code Section 125 Cafeteria Plans (Flexible Spending Accounts)
Bowman & Company LLP has provided Code Section 125 Cafeteria Plan Administration services to dozens of clients over the past fifteen years.
Employer-sponsored Cafeteria Plans enable employees to choose the benefits they want and to pay for those benefits with pre-tax dollars. Plans generally feature premium conversion, medical flexible spending, opt-out waivers and dependent care assistance options. Employees save on federal, FICA and Medicare payroll taxes. Employers save on the FICA and Medicare tax match.
Allowable medical expenses include out-of-pocket medical costs, such as prescriptions, dental, eyeglasses, deductibles and co-payments.
Employers often choose to provide 125 plans to reduce the burden of rising health care and dependent care costs and provide flexibility to employees with different needs. Please contact Harry Wills at 856-435-6200 to discuss how to cost effectively use the 125 Plan option for your employees.