Section 125 Cafeteria Plans

Imagine an employee benefit that could actually save your company money! Section 125 Cafeteria Plans do just that. By allowing employees to save tax-free money for certain expenses, these plans reduce their taxable income, which in turn reduces your company's share of taxes (Social Security, Unemployment, Medicare) on their earnings. To see how much these plans can save your company, use our online calculator.

• Premium Only Plan (POP) - Allows employees to have their share of healthcare premiums deducted from their paychecks before taxes
• Health Flexible Spending Account (FSA) Plan - Allows employees to set pre-tax money aside for expenses not covered by their healthcare plans (e.g., co-pays, procedures not covered by insurance, prescriptions, and over-the-counter medications)
• Dependent Care Flexible Spending Account (FSA) Plan - Allows employees to set pre-tax money aside for eligible dependent care expenses (e.g., child or elder care)

Click here to view a comparison chart of the different tax-advantaged savings plans for healthcare expenses.