Section 125 Plan Administration
Section 125 plan administration from CBIZ Payroll links your payroll to a flexible benefits program (pre-tax premium conversion accounts or flexible spending accounts). A Section 125 plan is a simple way to reduce employee taxes as well as employer tax liability while providing quality benefits to your employees.
Section 125 Plan Administration Benefits:
- Cafeteria POP: This “Premium Only Plan” allows employees to pay their share of premiums for health insurance, group term life insurance, disability insurance or cancer insurance with pre-tax dollars;
- Section 125 plan administration includes Medical FSA: Employees pay for common out-of-pocket medical expenses not covered by insurance, including deductibles, co-pays and vision and dental care with pre-tax dollars;
- Dependent Care FSA: Offers employees the opportunity to pay for most child/dependent care expenses with pre-tax dollars that, in some cases, provides a more substantial tax savings than the tax credit received from a tax return.
Our Full-service Section 125 Plan Administration Includes:
- Plan design and set-up;
- Plan document and adoption agreement;
- Annual 5500 tax form for Section 125 plan administration;
- Accounting and claims;
- Summary Section 125 plan administration description;
- Educate/enroll employees;
- Discrimination testing.
Flexible Section 125 Plan Administration Benefits You- and Your Employees:
- Section 125 plan administration allows employees to pay certain insurance premiums as well as medical and dependent care expenses with pre-tax dollars.
- Reduces employee taxes - Federal, State and FICA.
- Reduces employer tax liability - FICA match.
- Cost of Section 125 plan administration is offset by employer tax savings.
- Provides a significant employee benefit plan at little or no net cost.
- We provide turnkey document compliance and administration.
- Reimbursement checks are written from our trust account - no separate account is required for the client to reconcile and pay bank fees.
Section 125 Plan Administration Complements Payroll Consulting Services from CBIZ
In addition to Section 125 plan administration, we work closely with you to customize a package of employee benefits services designed to keep you competitive. Learn more about COBRA plan administration, worker’s compensation consulting services, payroll administration and using an online portal for insurance and benefits.