Increasingly, employers are seeking alternatives to the
traditional “one size fits all” benefit package—and
some relief to the rising cost of Health Care benefits. A properly
implemented Cafeteria Plan will expand employee benefits choices
without cutting into budgetary priorities.
Types of Cafeteria Plans
FCP can tailor for your company:
A POP is a simple method that allows premiums for employee group
plans, such as an HMO, PPO, health insurance, cancer insurance,
etc.), to be paid with an employee’s pre-taxed dollars. The
premiums are deducted from the employees' paychecks on each
payroll, thereby reducing the amount of F.I.C.A. and Medicare
taxes paid by the employer. Employees pay less F.I.C.A, federal,
state and (in some cases) local income taxes.
A FSA allows employees to pay for medical expenses not reimbursed
by insurance and for dependent care costs with pre-tax dollars.
The employer deducts the contribution each payroll and places it
into the employees Flexible Spending Account. The employee then
uses the money in the FSA to pay for eligible
expenses.
The
Full Cafeteria Plan combines the offerings of the POP and FSA
plans with a benefit credit from the employer. The benefit
credit is a dollar amount that can be used to buy a variety of
employee benefits using pre-tax dollars, or which can be
received as taxable cash.
Flexible
Corporate Plans, Inc. will customize a Cafeteria Plan
that suites your company’s unique “personality”—but that’s
only the beginning of our service. We also…
• Assume
the responsibility of completing 5500 Forms (as required by IRS
regulations) in an accurate and timely manner.
• Keep
your company in compliance by performing all needed
Discrimination Testing.
• Maintain
the tracking of premiums—including all changes to your
employee roster.
