A pre-tax solution to the rising cost of health care
Bene-Care offers pre-tax programs to reduce the impact of rising health insurance premiums, higher co-pays and out-of pocket expenses. Our clients can choose from a variety of different pre-tax programs resulting in immediate savings for both the employer and employees.
A section 125 cafeteria plan allows an employer to set up two or more benefit plans, giving employees the opportunity to save money in reduced taxes. This is accomplished through payment of certain qualified expenses with pre-tax dollars by redirecting a portion of their salary into the plan.
Full cafeteria plans are popular with mid-sized to large companies due to the high level of flexibility offered to employees.
What is a Premium Only Plan (POP)?
A Premium Only Plan enables employees to pay their portion of medical premiums with pre-tax dollars. Both the employer and the employees benefit from this type of plan:
- Employees’ premium contributions are automatically deducted from their salaries before taxes are taken out
- Employees reduce their taxable income, increasing take-home pay
- With employee pre-tax income lowered, employers pay less in FICA payroll taxes
These plans are easy to set up and require little to no maintenance once in place.
Bene-Care offers the following POP administration services:
- Legal documents and administrative forms
- Initial benefit election forms
- Reports for payroll to setup employee deductions
- Non-discrimination testing
Contact one of our sales consultants today to learn more, 1-800-333-1673.