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Our focus gives you the freedom to concentrate on your mission.

Flex Plan Administration

Our Cafeteria Plans are better than the meat loaf with mash potatoes and gravy!

Employers can ensure their pre-tax deductions are managed according to IRS and DOL guidelines by outsourcing cafeteria plan administration to Employer Support Services. ESS provides consulting, implementation, and on-going administration of cafeteria plans. A cafeteria plan will allow employees to take advantage of tax savings that cannot be gained anywhere else. An employer sponsored cafeteria plan then becomes a powerful benefit and recruiting tool.

What is a Cafeteria Flex Plan?

A cafeteria plan is a benefit established by an employer under IRS Code Section 125 that allows employees to pre-tax certain expenses. The IRS requires employers to meet specific guidelines in order to legitimately pre-tax employee expenses or benefits.

Cafeteria plans are often referred to as Flex Plans, 125 Plans, or Flexible Spending Accounts just to name a few. The term "cafeteria" refers to the menu of choices employees have relating to their benefits.

There are three common types of cafeteria plans. They are:

  • Premium Only Plan (POP) - This is the most basic plan and allows only for the pre-taxing of benefit premiums such as health or dental insurance.
  • Dependent Care Assistance Plan - This plan allows employees to pre-tax day care expenses, for both dependent children and adults.
  • Flexible Spending Plan - A flexible spending plan provides employees the ability to pre-tax unreimbursed medical related expenses. Unreimbursed medical expenses are outlined in IRS code Section 213(d) and include items such as doctor co-pays, deductibles, prescriptions, eyeglasses, and dental expenses.

Requirements of a Cafeteria Plan

The IRS requires employers to follow certain guidelines in order to have a qualified cafeteria plan. Some of the requirements include:

  • Plan document
  • Summary plan description
  • Adoption agreement
  • Testing
  • Communication to employees

Benefits of a Cafeteria Plan

A cafeteria plan is a win-win benefit. It allows for tax savings for both the employee and the employer. Employees save federal income taxes, state income taxes (in most states), and FICA taxes (Medicare and Social Security). Employee savings typically range from 20% to 40%. Employers save the matching portion of FICA which is 7.65%.

ESS's Cafeteria Plan Services

  • Plan design consulting
  • Plan document
  • Summary plan description
  • Corporate resolution
  • Employee education materials
  • Employee presentations
  • Discrimination testing (preliminary and end of year)
  • 5500 filing
  • Claims processing
  • On-going administrative consulting

How We Do It

It's not about us, It's about YOU.

Our secret sauce is pretty simple.

  • We focus on learning your business first, and then identify what are the best solutions for You!
  • Our staff is Thought Leaders, not service number taking paper pushers.  They have your back, your extra set of eyes, your sounding board, and are not satisfied with average.
  • A great mix of small company and large company experience in every industry across the US.
  • Over 15 years of being in the HR outsourcing business, we are battle tested.
  • Semper Gumby, Always Flexible.

At ESS we leave no stone unturned to give you full worth of your money, time and trust in us.  We respect the nature of every relationship and work hard today to make you better tomorrow!