A Section 125 Cafeteria Plan, which can include a Premium Only Plan and Flexible Spending Accounts, is a great way for employees to save money by using tax-free funds to pay for certain eligible expenses. Employee contributions also save the employer money by reducing payroll taxes.
We've partnered with WageWorks, a leading provider of Consumer-Directed Benefits, to administer your company's Premium Only Plan and Flexible Spending Accounts.
Premium Only Plans
This is a tax-savings plan for groups where employees can share in the cost of benefits through payroll deduction. POP plans allow employees' premiums to be deducted on a pre-tax basis.
Benefits of Flexible Spending Accounts (FSA)
- Employees can set aside a certain amount of each paycheck into an account before paying income tax. Participants can use their accounts to pay for eligible out-of-pocket medical, vision and dental expenses.
- Employers save on payroll taxes and can help cushion health insurance increases to lessen the impact on the employee's paycheck.
Types of FSA Plans
- Healthcare FSA – This account can be used to pay for eligible FSA expenses such as office visit copays, deductibles, prescription drugs, eyeglasses, dental care, orthodontics and much more.
- HSA-Compatible FSA – This plan is great for employees who also participate in a Health Savings Account (HSA) or Health Reimbursement Arrangement (HRA). This account can be used to pay for eligible dental and vision services and participant and/or employer is still eligible to contribute to HSA or HRA.
- Dependent Care FSA – This account can be used to pay for eligible child or elder care expenses while the employee is working..
Premium Only Plan Proposal and Application
Flexible Spending Account Proposal
*WageWorks is an independent company that offers Section 125 administration. This is not a Blue Cross and Blue Shield of Louisiana product or service. WageWorks is solely responsible for the services it provides.