Sec125

Payroll On A Budget offers easy to setup EasyChoice Section 125 plans that allow you to pay for certain employee group benefits – such as medical and dental plans – with pre-tax dollars, saving your business money that would normally be paid in taxes.

Our EasyChoice® Take Care plans are available in two forms: Premium Only Plans (POPs) and Flexible Spending Account (FSAs) Plans. Both provide secure ways for you and your employees to save money.

Premium Only Plans

POPs reduce both employee and employer taxes. By paying their share of group insurance premiums with tax-free dollars, employees could save 25 percent to 40 percent, depending on their tax brackets. Employers typically save on the matching Social Security and federal unemployment taxes of nearly eight percent of gross wages.

Flexible Spending Account Plans

The FSA is a similar concept to the POP plan however it can be expanded by an employer to whole cafeteria plans of pre-tax benefits selected by the employer. FSAs can also include commuter expenses and medical and dependent care costs. Employee accounts can also be created to pay for related out-of-pocket expenses. Our FSAs even offer a debit card for employees to access their pre-tax monies.

These accounts include:

• Dependent care reimbursement for employees with daycare or senior-care needs
• Medical expense reimbursement that covers out-of-pocket medical expenses not covered by insurance, along with deductibles, co-payments, prescriptions, dental expenses, vision care, glasses and contacts
• Commuter expense reimbursement for mass-transit expenses and parking fees, pre-tax

Contact us to learn more about our Section 125 services to help your small business save money.