Group Plans To Meet Your Company Needs

The Advantages of Section 125. 

If your employees pay a portion of their group insurance premiums, there's a way to increase their take-home pay and reduce your payroll taxes at the same time. To achieve this, CFOToday/TASC can help your company establish either a premium only plan or flexible spending account. Plus, we handle all of the administrative details.

Premium Only Plans (POP)

A premium only plan offers a benefit to both you and your employees. It provides the opportunity to obtain favorable tax treatment on employer-sponsored benefits, thanks to section 125 of the Internal Revenue Code. Here's how it works:

• Employees' premium contributions are automatically deducted from their salaries before taxes are taken out.
• Taxable income is reduced by the amount contributed, so employees pay less in taxes, and have more take-home pay.
• With employee pretax income lowered, employers pay less in social security (FICA) payroll taxes. (For applicable state legislation, consult your tax advisor.)

Flexible Spending Accounts (FSA)

A flexible spending account (FSA) offers a budgeting tool that helps pay for out-of-pocket medical, dental, and dependent care expenses not covered by employer benefit plans. Also, like a premium only plan, an FSA helps pay for itself by increasing employee take-home pay while decreasing employer payroll taxes.

Employees decide how much of their salary should be set aside, before taxes, to pay for unreimbursed expenses, like co-payments, deductibles, and even some over-the-counter medication. The amount is automatically deducted from their paycheck every pay period and is credited to their FSA account. Each time they incur an expense, they simply submit a claim online or by mail, and a reimbursement is made from their account. TASC provides claim reimbursements on a weekly basis. For maximum convenience, our optional check signing feature will sign and mail the checks to the employees' homes, or reimbursement funds can be electronically deposited directly into the employees' bank accounts.

• How much the time spent is actually worth: consider the cost of your time and the time of anyone who processes or "touches" payroll. Often, many people in a small company are involved in the various parts of payroll processing.
• What savings would outsourcing provide: since an outside provider can handle all the responsibilities involved in managing payroll and answering employee questions, a small business can often eliminate or reallocate an internal payroll resource.

Comprehensive Services and Easy Administration

Setting up and running a section 125 plan is simple; TASC and CFOToday handle all the complex and time-consuming recordkeeping details, such as:

• Payroll integration.
• Development of required legal documents, including the adoption agreement, plan document, and Summary Plan Description.
• Compliance testing.
• Regular employer and participant account status reports.
• Daily processing of claim reimbursements.
• Online claim submission.
• Check processing - reimbursement checks are mailed directly to employees' homes.
• Optional debit card - with appropriate funds in your account, expenses are debited from your Flex account without any claims submission.  
• Optional direct deposit of reimbursement funds into employees' bank accounts.
• 100% Audit Guaranteed.

Account Management Tools for Flexible Spending Accounts

TASC provides plan participants with the following tools to help them manage their FSA:

• Online access via a secure TASC Online Web site. Take the TASC Online FlexSystem Spending Account site tour to learn more.
• Toll-free access to our Section 125 support team.
• Automated phone system to provide participants easy access to account information.

For more information about our products and services, contact CFOToday at 480-641-8100 ext. 201, Monday through Friday from 8:00 a.m. to 8:00 p.m. PST. Or, use our online form for a no-obligation quote.