FlexSystem - Frequently Asked Questions

What does FlexSystem offer?

FlexSystem is a Section 125 Cafeteria Plan that offers your employees a choice to pay for certain qualified benefits on a pre-tax basis. Paying for certain benefits with pre-tax dollars reduces the amount your employees pay in taxes and increases their take-home pay.

What are qualified expenses?

The expenses include employee contributions toward medical-related insurance premiums, medical-related expenses such as deductibles, co-insurance, or uninsured medical expenses and dependent care expenses. Medical related expenses include dental care, prescriptions, eyeglasses and out-of-pocket medical expenses that may not be covered by insurance premiums.

How does my Company benefit from implementing a FlexSystem?

Employers save 7.65 percent on every dollar employees run through a Section 125 Plan. Employers also benefit from increased employee loyalty and improved ability to recruit new employees.

Can I afford FlexSystem?

FlexSystem's fee schedule can make implementing a Section 125 Plan affordable for companies with as few as five employees. In most cases, the savings generated through a decrease in payroll taxes will more than pay for the administration fees.

Do I need to change insurance providers to participate?

Because FlexSystem is not tied to an insurance plan or company, there is no need to change insurance providers.

Are there any risk? What are they?

There are basically two risks: 1) Under the Use-It-or-Lose-It Rule money not used by the end of the Plan Year is retained by the company. FlexSystem will assist employees with precautionary steps to avoid having large amounts left in the Plan at year-end. 2) Under the Uniform Coverage Rule the employer is at risk if an employee quits with a negative balance. FlexSystem can recommend steps to help reduce this minimal risk, and FlexSystem fronts the money. 

Under what circumstances can the annual election be changed?

The elections can only be changed if there is a change in family or employment status.

How do I sign up for FlexSystem?

CFOToday will be happy to provide you with more information and the forms necessary to sign up for this valuable service. Just contact CFOToday Sales at (480) 641-8100; press extension 201 for Joel Karpinski.