Section 125 Cafeteria Plans

As an informed employer, you already recognize the significant benefits of offering pre-tax benefits to your employees. Not only do your employees save tax dollars, you do too! When it comes to cafeteria plans, FishLadder offers a variety of solutions, including:

At FishLadder, we will carefully evaluate your needs and provide all the necessary documents, testing, materials and services to ensure your plan complies with the IRS and other legal requirements. Services include:

  • Preparation of plan documents
  • Reimbursement forms and service
  • Non-discrimination testing
  • Preparation of form 5500
  • Employee meeting training video and brochures
  • Savings calculators
  • Presentations
  • Best in class service – access via telephone or on-line chat
  • Traditional or Flex Convenience Card reimbursements

Premium Only Plan (POP)

The establishment of a POP allows for employees to pay for their portion of group insurance premiums on a pre-tax basis. It is common for employees to save anywhere from 25% to 40% in taxes (depending upon their income tax bracket). For the employer, each dollar contributed reduces the employers’ share of FICA (generally 7.65%). As you can see, establishing a POP is a win-win for everyone.

Flexible Spending Accounts (FSA)

Establishing a FSA for your employees takes benefits from good to great and allows employees to pay their unreimbursed out-of-pocket expenses on a pre-tax basis. FSA’s generally include a Medical FSA, that covers non-reimbursed expenses for office co-pays, prescription co-pay, orthodontics, etc, as well as a Dependent Care FSA, that covers qualified day care expenses. Again, it’s a win-win for everyone.