Flexible Benefit Plans
Flexible Benefit plans offer employers a vehicle with which to expand their benefit options without significantly increasing their cost. Employers, with appropriately designed and enrolled Flexible Benefit Plans, may save more through FICA tax savings than they spend.
Employees benefit by paying for their benefits with pre-tax earnings, which reduces their Federal, State and FICA income taxes. In addition, they have the ability to custom fit their benefit plan with choices that meet their individual needs. It is true that “one plan does not fit all employees”.
Employers benefit through reduced FICA taxes that can be greater than the cost of offering these plans. In addition, giving employees a say in their benefits coverage enhances employee goodwill. It also begins the education process necessary for consumer-driven benefit plans.
Flexible Benefit plans are just that— flexible. Plan designs can range from the basic premium only to any number of variations involving full flexible benefit menus. SOMI offers:
Premium Only Plans
Allow employees to deduct their existing benefit premiums on a pre-tax basis.
Health Care Flexible Spending Accounts
Also known as Section 125 plans, these accounts allow employees to contribute on a pre-tax basis to their health care account that will allow them to later pay (in the plan year) for certain IRS-approved health care expenses that are not reimbursed by any other benefit plan.
Dependent Care Flexible Spending Accounts
Allow employees to contribute to an account to pay for certain work-related dependent care expenses on a pre-tax basis. These plans are also known as Section129 plans.
Transportation Expense Reimbursement Plans
Allow employees to contribute to an account to pay for monthly eligible transit, parking and van or car pool expenses on a pre-tax basis and be reimbursed like a dependent care account. These plans are also known as Section 132 plans.
Debit Card Option
The Flex debit card will increase plan participation and simplify the reimbursement process for you and your employees.
Full Flexible Benefit Menus
All of the options above can be combined to create a full flexible benefit menu that can include:
SOMI has been providing Flexible Spending Account (FSA) services for over 25 years. We provide a comprehensive package of services that brings together plan design, implementation, employee communication, and administration of your FSA program.