Cafeteria Plans

Attractive Benefits with Little Employer Cost

As the cost of medical, dental, and other benefits continue to increase, employers have had to ask employees to contribute a portion of the premium toward the costs of these benefits.  A very attractive program sanctioned by the IRS allows employees to pay these contributions with pre-tax, that is take a tax deduction, dollars.

Employees save not only Federal Income Tax (generally saving from 10% to 28%) but also the corresponding F.I.C.A. (Social Security) Tax, which saves an additional 7.63%.

This program can be further enhanced to provide for pre-tax dollars to pay for unreimbursed medical expenses and dependent daycare expenses for children under age 13 or in certain cases parents/senior relatives living with and dependent upon the employee.

There are government requirements in order to have such benefits, so please be sure to contact us so we can help you through when you wish to understand all the ramifications and establish such a plan.