Section 125 Flex Plan
What is a 125 Flex Plan
A Flex Plan is an employer-sponsored benefit that allows employees to be reimbursed for certain expenses tax-free. Employees save federal, state, social security and Medicare taxes on those dollar amounts, thus increasing their take-home pay. Flex Plans are part of the Internal Revenue Code, section 125, and are designed to give employees the opportunity to pay for certain eligible living expenses with tax-free dollars. Before a Plan Year begins employees elect to have a certain amount of their salary designated as tax-free. These tax-free election amounts are to be used for eligible expenses in the Flex Plan. Employers also benefit by providing a Flex Plan because they do not have to pay FICA (7.65%) on employees’ Flex election amounts.
For more information see the Flex
Group and Individual Employee Education
Flex Plans are, by nature, intimidating and complicated. And, a flex plan is a meaningful benefit to employees only if it is clearly communicated so employees know how to best utilize it. Our exceptional instructors make the difference. These dedicated professionals are outstanding presenters, trained and experienced in Section 125.
We utilize a combination of group and individual meetings to educate your employees. Upon completion of our education process, employees understand how the program can benefit them personally.
The EBC Approach
Quality Employee Education
Upon completion of our education process, employees understand how the program can benefit them personally.
Complete Selection of Flex Categories
Most plans allow only three categories of eligible expenses. We offer five categories.
- Payroll Deducted Health Insurance Premiums
- Un-reimbursed Medical Expenses
• Full-Use Medical Flexible Spending Account
• Limited-Use Medical Flexible Spending Account
- Child and Adult Daycare
- Health Savings Accounts
- Outside Health Insurance Premiums
- Group-Term Life Insurance
Services & Fees
Design your own plan and pay accordingly!
- Shared Administration
- Full Service Administration
Fees will be discounted based on level of service provided. Please contact us for more information.
What is a Section 125 Flexible Benefits Plan?
A Section 125 Flexible Benefits Plan (Flex Plan) enables you to reduce your taxes and your employees’ taxes on eligible expenses. It is authorized under Section 125 of the Internal Revenue Code.
What Taxes Can I Save?
Districts save FICA/Medicare taxes. In most cases the savings generated by our plan will be more than enough to offset administrative fees.
What Taxes Can My Employees Save?
Your employees will save Federal, State, and FICA/Medicare taxes. Typical savings would be 30-40% of the dollars elected by participants.
in Status Form
Complete this form when you have experienced a “Change Event” and want to modify your flex election(s). If you have a child, this form must be completed within 30 days of the birth of the child in order for the child’s expenses to be covered retroactive to the birth.
Use this form to help you compute your flex plan elections. Consider each category independently. Be conservative in your estimates.
Use this form to determine the amount of orthodontia expenses that can be claimed during the upcoming plan year.
Waive automatic pre-tax payroll deduction for all employer provided insurances.
Information Change Form
If you change your name, address, phone numbers or email address, complete this form and give it to your flex plan administrator.
Use this form if your provider does not have an invoice of their own to submit with the Reimbursement Claim Form.
Use this form to submit for reimbursement of eligible expenses in any of the FSA categories (e.g., Dependent Care, Medical FSA, Outside Health Insurance and in limited circumstances Group Term Life)
Only required by participants whole school district is participating in the Full-Service option.
of Medical Necessity
This form must be submitted with the Reimbursement Claim Form when you are requesting reimbursement for a dual purpose item (e.g., dietary supplements or capital expenditures). This form must be completed by your physician in order to get reimbursed.
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