Section 125

Many companies interested in establishing a cafeteria plan are concerned about the problems of administering such a plan. BEN-E-LECT ends those concerns.

At BEN-E-LECT dedicated, knowledgeable people hold positions that have perfected through years of experience. We can provide consulting, administrative services, and communications in all areas of flexible benefit plans. We make service a priority.

A Section 125 Plan is a method of delivering benefits to employees in a manner that provides tax savings to both the participant employees and to the sponsoring employer. The tax advantages come from Code Section 125, which was added to the Internal Revenue Code by the Internal Revenue Act of l978.

Section 125 is not an insurance plan. Section l25 is not magic. It simply enables employees to pay qualified expense with pre-tax dollars instead of taxed dollars. And... for every dollar an employee elects to place under Section 125, the employer will save an average of l5% in payroll tax.

All charges that employees are required to contribute for their employer sponsored insurance may be pre-taxed.

All qualified charges for health care treatment incurred by an employee and/or dependent, which will not be paid by their medical insurance, may be pre-taxed.

All qualified charges up to $5,000 annually, incurred for day care or baby sitting, required to enable the employee or spouse to work may be pre-taxed

Section 125 Fee and Benefit Outline