Section 125 Cafeteria Plan Form

As is the case with our sample cafeteria plan documents since past special enrollment rights had only a 30 day timeframe.

Section 125 cafeteria plan form.

A town has a cafeteria plan section 125 plan which offers dependent care assistance. An employee can generally exclude from gross income up to 5 000 of benefits received under a dependent care assistance program each year. Although most cafeteria plan documents include hipaa special enrollment rights under code section 9801 f many plans likely do not allow for a 60 day election period. A 125 cafeteria plan may offer only qualified benefits.

Sbc spd and section 125 cafeteria plan document. Setting up a section 125 cafeteria plan is straightforward and easy. Section 125 cafeteria plans also provide several important advantages to employers especially those who own a small business. Because the happiest employees make the happiest employers.

Accordingly a cafeteria plan that fails to comply with 125 i for plan years beginning after december 31 2012 is not a 125 cafeteria plan and the. Enough commission on a section 125 cafeteria plan to bother explaining the concept. The benefits received by an employee exceed 5 000. These benefits can include health insurance child care adoption assistance life insurance and health savings accounts.

A plan that offers a nonqualified benefit is not a 125 cafeteria plan. A section 125 plan is called a cafeteria plan. The plan document is a long form description of what s offered in the cafeteria plan. This plan allows employees to choose to withhold pre tax salary to cover the cost of specific benefits or to choose between taxable and non taxable.

Top rated third party administrators of cafeteria plans and section 125 plans. Section 125 plans section 125 plans from paychex can save money for your company and employees. An employer needs to set up the plan with proper documentation notify employees and perform nondiscrimination testing. As succinctly as possible what you need to know about the three different benefits that make up a full section 125 cafeteria plan keep in mind you can implement just one or any.

Our commitment to providing the best possible options for your business makes all the difference. It includes costs coverage and basic information. As a result the employer s fica futa suta and workers compensation costs are also lower. Reduced payroll taxes for employees who participate in the 125 cafeteria plan.

How is this benefit reported on form w 2. We tailor your reimbursement options to fit your company s unique needs.