| Section
125 is a section of the Internal Revenue Code that allows
employees to earmark pre-tax dollars toward payment of
Insurance Premiums, Medical Care, and Dependent Care
expenses. The dollars used for this purpose are not subject
to Social Security, Federal, or most State taxes. In
effect, section 125 permits the employee to increase
their net income by using dollars before they are taxed.
For Employees
Sometimes referred to as a cafeteria plan, flex plan,
or a Section 125 plan, a Flexible Savings Account
(FSA) lets you set aside a certain amount of your
paycheck into an account — before paying income
taxes. During the year, you have access to this account
for reimbursement of expenses — not covered
by insurance — that you regularly pay for
Benefit To The Employer
The salary dollars employees direct to a Section 125
Benefit Plan can reduce employer payroll tax costs,
as those dollars are not subject to the employer
Social Security contribution. In addition, lowering
payroll can result in reduced Federal and/or State
Unemployment Tax contributions and Workers' Compensation
premiums.
Execupay provides Section 125 plans from
the leading providers.
Portfolio Overview
- Accident/Disability
- Cancer
- Dental
- Hospital Confinement Indemnity
- Hospital Confinement Sickness Indemnity
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- Hospital Intensive Care
- Long-Term Care
- Life
- Short-Term Disability
- Specified Health Event
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