Employers and employees are similar when it comes down to wanting the best healthcare benefits possible while reducing the amount of tax money that is taken out of their paychecks.
At ESS, we offer consulting, application, and ongoing administration services to companies looking to save money on taxes while providing health benefits that work best for the business. Our cafeteria plan solutions will not only make your current employees happy but also become a powerful recruiting incentive for future hires.
Our years of expertise allows employers to manage their employees’ pre-tax deductions according to IRS and DOL guidelines. While there are several plans to choose from, the two most common tax-saving options employers use are found in Section 105 and Section 125 of the IRS tax codes.
We Are the Experts in Administering Section 125 Cafeteria Plans
Cafeteria plans provides employees a menu of options to choose from relating to their health benefits that are set by their employer. Choosing a cafeteria plan for your company allows employees to take advantage of tax savings and benefits under IRS Code Section 125. With this healthcare plan, both employees and employers will be able to save money on state, federal, and FICA taxes.
Most Common and Beneficial Cafeteria Plan Options:
Premium Only Plan (POP) – The basic plan that allows employees to reduce their taxable income by paying their part of the offered benefit premiums such as health or dental insurance in pre-taxes.
Dependent Care Assistance Plan – This plan allows employees to use pre-tax care expenses for employees with either dependent children or adults or both.
Flexible Spending Account (FSA) – A flexible spending plan that gives employees the ability to pre-tax unreimbursed medical-related expenses.
Health Reimbursement Accounts (HRA) are one of the most common plans included in Section 105 of the IRS tax code that gives employees a more personalized choice in their healthcare coverage. Unlike cafeteria plans, HRAs are funded solely by the employer to give their employees’ tax-free reimbursements on their healthcare expenses.
One of the benefits of an HRA plan is that it gives employers more control on the overall budget for their employees’ healthcare benefits and also receive tax deductions. HRA plans can also help companies compensate for high deductibles and copays as well as other medical, dental, or eyecare expenses that your employees may have.
Which Cafeteria Plans Does You Company Qualify for?
With over 20 years of experience, our team at ESS can help assist your team of insurance agents and accountants in managing your health benefits plan to reduce company expenses. We find the plans and tax codes that your company qualifies for and create an administrative plan that maximizes savings in taxes and provides healthcare benefits for your employees.
Let us help you find and administer the healthcare benefit plans that ensures your pre-tax deductions and health benefits are maximized to the greatest extent.