Section 125 Cafeteria Plan Administration


Overview: Section 125 Cafeteria (Flex) Plans

A cafeteria plan is referred to as flexible compensation because it allows employees to be more flexible with their salary and benefits. They can be used for medical and dependent care expenses. With a cafeteria plan, employees elect to fund benefit accounts through pre-tax salary reductions. When employees contribute to their cafeteria plan, they save on federal and state income tax, along with FICA and Medicare taxes (approximately 30%).

Benefits to Employee

  • Increased take-home pay
  • Online portal and benefits debit card
  • Flexibility

Benefits to Employer

  • Enhanced benefits package
  • The employee elects to make a pre-tax contribution for medical expenses that reduces the employer’s share of FICA and Medicare taxes on employee contributions to the plan (7.65%).
  • Helps simplify the reimbursement process

We offer administration of the following Flex Plans:

Dependent Care Reimbursement Accounts
Flexible Spending Accounts ( FSAs)
Premium Only Plans (POPs)

Let us exceed your expectations. Contact Beth Wepplo at (888) 388-1040 to learn more.


View All Flex Plans Resources