A Section 125 Cafeteria Plan provides employees the opportunity to pay medical insurance premiums, medical out-of-pocket expenses (for deductibles, coinsurance and non-covered items) and child care expenses with pre-tax dollars.
Flex Plan amounts are treated as salary reduction and reduce taxable income for income tax and FICA tax purposes. Employees are reimbursed for eligible expenses as the money is spent.
Employees appreciate this benefit and employers enjoy a reduction in FICA taxes.
DSP Insurance Services will provide advice and support in the design and implementation of your Section 125 Plan. We have relationships with reputable administrators who provide quality service at a reasonable cost.