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Click login button below your Appropriate Employer: Blooming Prairie-HRA, Chatfield, Duluth, Eden Valley-Watkins, ISEA, Lake Benton, Milaca, Walker, Albany, Caldwell, Taylor and Brown, Fargo, Long Prairie-Grey Eagle, Maple River, Westbrook-Walnut Grove, Minneota, Pine Island, Pipestone, St. Clair, Truman, Kasson-Mantorville, Maquoketa Valley |
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What is a 125 Flex Plan
A Flex Plan is an employer-sponsored benefit that allows employees to be
reimbursed for certain expenses tax-free. Employees save federal, state,
social security and Medicare taxes on those dollar amounts, thus increasing
their take-home pay. Flex Plans are part of the Internal Revenue Code, section
125, and are designed to give employees the opportunity to pay for certain
eligible living expenses with tax-free dollars. Before a Plan Year begins
employees elect to have a certain amount of their salary designated as tax-free.
These tax-free election amounts are to be used for eligible expenses in
the Flex Plan. Employers also benefit by providing a Flex Plan because they
do not have to pay FICA (7.65%) on employees’ Flex election amounts.
For more information see the Flex
Brochure.
Educational Services
Group and Individual Employee Education
Flex Plans are, by nature, intimidating and complicated. And, a flex plan is a meaningful benefit to employees only if it is clearly communicated so employees know how to best utilize it. Our exceptional instructors make the difference. These dedicated professionals are outstanding presenters, trained and experienced in Section 125.
We utilize a combination of group and individual meetings to educate your employees. Upon completion of our education process, employees understand how the program can benefit them personally.
The EBC Approach
Quality Employee Education
Upon completion of our education process, employees understand how the program can benefit them personally.Complete Selection of Expense Categories
Most plans allow only three categories of eligible expenses. We offer five categories.
- Payroll Deducted Health Insurance Premiums
- Un-reimbursed Medical Expenses
- Child and Adult Daycare
- Outside Health Insurance Premiums
- Group-Term Life Insurance
Services & Fees
Service Options
Design your own plan and pay accordingly!
- Self-Administered
- Shared Administration
- Full Service Administration
Fees will be discounted based on level of service provided. Please contact us for more information.
FAQ's
What is a Section 125 Flexible Benefits Plan?
A Section 125 Flexible Benefits Plan (Flex Plan) enables you to reduce your
taxes and your employees’ taxes on eligible expenses. It is authorized
under Section 125 of the Internal Revenue Code.
What Taxes Can I Save?
Districts save FICA/Medicare taxes. In most cases the savings generated
by our plan will be more than enough to offset administrative fees.
What Taxes Can My Employees Save?
Your employees will save Federal, State, and FICA/Medicare taxes. Typical
savings would be 30-40% of the dollars elected by participants.
What Expenses Are Eligible?
Flex Plan Eligible
Expenses
Over The Counter Eligible
Expenses
2010 Mileage Rates Released
For the upcoming 2010 tax year they are:
• 50 cents per mile for business,
• 16.5 cents per mile for moving
• 16.5 cents per mile for medical trips
These rates are slightly lower than 2009 rates, which were:
• 50 cents per mile for business,
• 24 cents per mile for moving
• 24 cents per mile for medical trips
The reason for the decrease? Transportation costs were slightly lower when
the calculations for next year numbers were made as compared to the prior
year's data.
Please pass this information on to your participants. Thanks!
Call us to get started today!