Section 125 Premium Only Plan Highlights

• Dollars can be deducted from an employee’s gross wages before they are taxed, and used to pay for certain benefits like medical insurance.

• Employees can benefit by saving a percentage of their pre-tax Section 125 premium deductions. The actual savings are on city, state, and federal income taxes, including Social Security and Medicare taxes.

• Certain benefits can now be paid tax-free, increasing employees’ take-home pay and helping to reduce the high cost of health coverage.

• Employers benefit by reducing the matching Social Security and Medicare taxes, and sometimes Federal and State unemployment taxes.

Section 125 Premium Flexible Benefit Reimbursement Account Plan Highlights

• This plan allows for employees to use pre-tax dollars to pay for non-reimbursable medical and eligible dependent care expenses that are not reimbursed by insurance.

• Eligible medical expenses for a Flex Benefit Reimbursement Plan include:

• Deductibles and Coinsurance Amounts
• Medical Expense charges in excess of the amount reimbursed under a group health plan
• Dependent day care charges
• Charges not covered in a group insurance plan (like certain surgeries), vision care, dental care, hearing aids and more.

Additional Information