Cafeteria Plans

Cafeteria or Section 125 Plans are a great way for employers to increase employee loyalty and reduce turnover. Simply allow us to set up a Section 125 Plan and we will offer several top-notch, frequently requested employee benefits at no cost to you!

Section 125 Premium Only Plan
Summit Financial Group can set up your Section 125 Premium Only Plan complete with Form 5500 information and plan document. A Premium Only Plan allows all employees to deduct healthcare premiums, dental premiums, and cancer premiums on a pre-tax basis under Section 125 of the IRS code. This can save on federal taxes, state taxes, and FICA taxes, for your employees. This can easily amount to roughly a 30% savings on their premiums. In addition, the employer saves the 7.65% FICA match on those same premiums, and if your Worker's Compensation premiums are a function of payroll you can save even more by lowering payroll. A double savings is always nice.

Section 125 Plan with Flexible Spending Accounts
Summit can also install the other portions of the act to include flexible spending accounts—in addition to the Premium Only Plan services mentioned above. If employees elect to participate in a Plan with Flexible Spending Accounts, each employee participating would often be charged a low monthly fee. This allows the employee and their family to pay for deductibles, coinsurance, unreimbursed medical and dental expenses and now some over the counter medicines are eligible too. The employer saves more of the 7.65% FICA on these monies set aside by employees too.

(see www.ezflexplan.com/adminone )