No Net Cost
The employer sponsors a 125 "cafeteria" plan. Employee elects to contribute a premium through the Section 125 plan for a voluntary, self-funded Limited Medical Plan
If we had a way to save you $500 to $700 per year per employee on your payroll taxes, would you be interested?...
The employee's income subject to payroll taxes is reduced by participation in the Limited Medical Plan through a Section 125 "Cafetertia" Plan. This also reduces the matching FICA tax obligations of the employer. You save money and there is no reduction in an employee's take-home pay. In addition your employees are provided with additional insurance benefits which can include accident, critical illness, cancer, hospital indemnity, and cash value life at no out of pocket cost.
The Program is valuable to employers as they continue to struggle with balancing compliance, meaningful benefits, premium increases, and employee satisfaction with their benefits.
Employers can save money necessary to grow their business. No changes are required in other benefit or health plans, advisors, or payroll services.
Pre and Post Tax Deductions
In these plans qualified medical expenses are reimbursed. Participating employees wages / salary are reduced to fund a Limited Medical Plan offered through a Section 125 cafeteria plan. This reduction is deemed to be on a pre-tax basis and excluded from taxable income, per IRS Code Section 125 Rules.