Health Benefits/ Section 125 Plans

Keeping ahead of the employee benefit curve.

Healthcare costs are spiraling out of control and suffocating American businesses. Regardless of new regulations of healthcare overhaul, APR professionals can help you get the most out of your healthcare dollars, while providing excellent benefits to your employees.

Our experts can examine your existing benefits coverage, and create a comprehensive plan that will negotiate contracts with vendors and design and execute strategies for all product lines.

Our clients rely on our consultants to provide advice on changes in the healthcare market place and keep them ahead of the employee benefit curve.

Section 125 Plans

A section 125 Plan is a section of the Internal Revenue Code that allows employees to set aside pre-tax dollars toward payment of Insurance Premiums, Medical Care, and Dependent Care expenses. The dollars, used for this purpose are not subject to Social Security, Federal or most State Taxes.

For the Employees:

Sometimes referred to as a cafeteria plan, flex plan or a Section 125 plan, a flexible savings account (FSA) lets you set aside a certain amount of your paycheck into an account, before paying income taxes. During the year, you have access to this account for reimbursement of expenses, not covered by insurance, that you regularly pay for. In effect, Section 125 permits the employee to increase their net income by using dollars before they are taxed.

Benefit to the Employer:

The salary dollars employees direct to a Section 125 Benefit Plan can reduce employer payroll tax costs, as those dollars are not subject to the employer Social Security contribution. In addition, lowering payroll can result in reduced Federal and/or State Unemployment Tax Contributions and Worker’s Compensation Premiums.