Section 125 Pre-Tax Plan Benefit

Flexible Spending Accounts (FSA) | eflexFSA
Flexible Spending Plans are a great way for both employers and employees to save money.
In fact, they are one of the only benefits that save both employees and employers money. These pre-tax plans work by allowing employees to set aside money pre-tax (before taxes are deducted from their paychecks) to pay for common everyday medical, travel, and dependent care expenses. Pre-tax plans save money on Federal, FICA and state taxes.

Benefits of FSAs:

Employers save 7.65% in FICA taxes for every dollar employees contribute to an FSA.
Employees get an “instant raise” in the form of tax-savings.
Employees enjoy the peace of mind that money for their health needs is there when
they need it -no worrying about paying for unexpected (or expected) medical expenses.
Morale Booster

All pre-tax accounts save you and your employees money, but the added benefits come from which company you choose to administer your plan. With eflex you get industry leading service, which means we’re here anytime you need us, employees get their money back faster, and we have some of the lowest claims error rates in the industry. Reliable, trustworthy, available and lucrative -what more could you ask for?

eflex | Dependent Care FSA (DCFSA)
The DCFSA allows employees to pay dependent care expenses with pre-tax dollars. Married
couples filing jointly and singles, may elect up to $5,000 pre-tax annually for dependent care,
which results in significant tax savings for both the employee and employer.
At eflex, we include the DCFSA with the Health FSA. Employees may enroll in just the FSA,
just the DCFSA or both.

Who is a Qualifying Dependent?

A dependent who was under the age of 13 when the care was provided, and for whom
the employee may claim an exemption on his/her taxes.
A spouse who is physically or mentally challenged.
A dependent who is physically or mentally challenged, and for whom you may claim an
exemption (e.g., an aging parent living with the employee).

We also offer recurring claims service for DCFSA. Recurring claims allow the employee to submit one claim at the beginning of the plan year that will automatically generate a reimbursement each time there is a payroll deduction.

eflex | Premium Only Plans
The eflex Premium Only Plan (POP) is the building block of the Section 125 Plan. It allows for certain employee-paid group insurance premiums to be paid with pre-tax dollars, which means big money savings.

Qualified Premiums:

Health
Prescription
Dental
Vision
Disability
Employee Group Term Life (up to $ 50,000.00)
Cancer
Medicare Supplement
Hospital Indemnity
Accident

Employee Savings

Employees can save 20 – 40% of their payroll deductions. The savings are on city, state, and federal income taxes, including Social Security and Medicare.

Employer Savings

Employers save the matching Social Security and Medicare taxes, and sometimes Federal and State unemployment taxes. Depending on the state, employers may also be eligible for worker’s compensation savings.