Cafeteria Plans - also known as Flexible Benefit Plans, Section 125 Plans allow employees to pay for certain benefits with pretax dollars. This allows them to save taxes on insurance premiums, out of pocket health care and or related child or dependent care expenses. Any dollar the employee defers into the flex plan is withheld before any taxes are calculated. The employer will save their portion of social security tax, Medicare, payroll and any other state-required taxes.

The employee may elect to participate in any of three accounts. Federal, State and Social Security taxes are saved on every dollar contributed to the plan.

1. PREMIUM ACCOUNT allows employees to pay their group insurance premium contributions pretax, increasing their take home paycheck;
2. HEALTH CARE SPENDING ACCOUNT allows employees to use pre-tax monies to cover deductibles, co-pays and other non covered expenses;
3. DEPENDENT CARE SPENDING ACCOUNT allows employees to save taxes on child or dependent care expenses.

For more information, please send us a note or call Teresa Harper at 1-800-551-2090
info@verdeservices.com.