| SECTION 125 ADMINISTRATION | Section 125 allows employees to select certain benefits normally paid on an after-tax basis and, through payroll deduction, to pay for these benefits on a pre-tax basis. This allows employees to increase their take-home pay without costing the employer more money. Section 125 Plans, also known as “Cafeteria Plans” or “Flexible Spending Accounts” can be structured to include a variety of benefits, including:
Premium Only Plans (POP). Employees pay their share of company sponsored health plans with pre-tax dollars.
Medical Flexible Spending Accounts. Employees establish individual savings accounts to reimburse certain medical expenses with pre-tax dollars.
Dependent Care Flexible Spending Accounts. Employees use pre-tax dollars to reimburse dependent day care expenses.
Term Life and Disability Premiums. Term life and disability insurance policies covering employees are paid with pre-tax dollars.
Transportation Expenses. Employees can pay for transit passes, commuter highway vehicles, and qualified parking with pre-tax dollars.
CheckWriters Payroll simplifies employer involvement in the administration of these programs, as well as others. We also offer web-enabled services that make it easy for employees to enroll, manage accounts and request reimbursement.
For more information about our Section 125 administration services, please contact sales@checkwriters.net
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