Welcome to Taylor Benefits, a leading independent group insurance and benefits agent serving the entire state of Texas! We have more than 20 years of experience working with companies to offer various types of Section 125 cafeteria plans to the their employees. Here are three of the most popular types of Section 125 plans and options we provide:
Premium Only Plan (POP) – One of the most common types of Section 125 cafeteria plans are Premium Only Plans, sometimes called Premium-only Cafeteria Plans. Premium Only Plans are often used in conjunction with health plans offered by employers, which allow employees to pay for health costs with tax-sheltered earnings. Insurance premiums can be paid with money that’s invested into a POP account.
Flexible Spending Accounts (FSA) – Flexible Spending Accounts, also called a flexible spending arrangement, are another type of plan that falls under IRS Section 125. Like a Premium Only Plan, an FSA allows employees to use tax-free earnings to cover qualified medical and healthcare expenses. Money that is invested in an FSA is exempt from both FICA and federal income tax.
Click here to learn more about how an FSA can benefit employees and employers alike, including examples that incorporate the Affordable Care Act.
Health Savings Account (HSA) Contributions – Health Savings Accounts operate similarly to an FSA, but they are usually geared toward employees that have a high-deductible plan. As with an FSA, the money put aside for use in an HSA is also tax-sheltered and can be used to pay for health expenses. To qualify for an HSA plan, an employee must be enrolled in a compatible plan type.
Need more information about providing quality benefits to your employees? This thorough guide (PDF) from the Department of the Treasury has all the information you’ll need!
Call us today at the number at the top of the page if you have any questions or would like a FREE cost estimate for Section 125 cafeteria plans! We also provide estimates through out online request form at the top right! No payment or commitment required for a price quote!
We’re ready to help! Call today: 800-903-6066