Also referred to as cafeteria plans, Section 125 plans are an integral part of many employers’ benefits programs. With a flexible benefits plan, employees can select benefits that best meet their individual needs.

Flexible benefits plans were made possible through Section 125 of the Internal Revenue Service code created by the Revenue Act of 1978. These plans help make benefits more affordable for employees and provide additional benefit choices. Both employers and employees benefit from employee participation.

Advantages to Employers

• Savings
• FUTA enhanced benefits programs
• FI
• Benefits choices
• Spendable income
• Taxes

Flexible benefits programs offer both premium conversion programs and flexible spending accounts (FSA), which includes dependent care and medical reimbursement plans. Flexible benefits plans allow employees to pay for qualified benefits with pretax dollars, which decreases their taxable income and increases their spendable income. As a result, the plans lower an employer’s payroll base and provide tax savings. For an example of how Flexible benefits plans make benefits more affordable, select the following link: Section 125 Plan Example Worksheet.

Adding a flexible benefits plan can make an employer’s existing benefits program even more valuable to them and their employees. By including a flexible spending account to your flexible benefits plan, the employees can pay for dependent care and out-of-pocket health care expenses with pretax dollars. Health care reimbursement plans allow employees to be reimbursed with pretax money for medical expenses not covered by insurance plans. Eligible expenses include dental and vision expenses and health plan deductibles. Dependent care reimbursement plans allow employees to be reimbursed with pretax money for dependent care expenses that enable employees (and their spouses) to work. Eligible expenses include day care or after-school care expenses for a child under the age of 13, or care for a spouse or an adult dependent incapable of self-care. Here’s how an FSA works:

Here's how an FSA works:

• determine the amount to be deducted from their paycheck before taxes.
• amount is credited to their individual reimbursement accounts.
• file for reimbursement from their accounts as they incur eligible expenses.

MARKET KNOWLEDGE

Through our expanding market knowledge, Chimienti & Associates stays abreast of all the trends and developments associated with flexible benefits plans.

Communications Expertise
Benefits counselors effectively communicate flexible benefits plans to our clients through extensive program knowledge, interpersonal skills, and enrollment support materials. We utilize state of the art electronic enrollment capabilities including one-on-one laptop core benefits enrollment and/or Internet enrollment designed to best suit the client’s needs.

INSURANCE PRODUCTS

IRS Code Section 106 allows several types of voluntary employee-paid insurance products to be among the qualified benefits under a flexible benefits plan.

Our experience and success in flexible benefits plans is growing steadily. As a result, Chimienti & Associates is becoming more and more diversified in providing services for these plans. Our flexible benefits program is segregated into three distinct, yet compatible areas:

• Consulting
• Communications
• Administration Referral Services