Section 125 Cafeteria Plans
A Section 125 Cafeteria Plan, which can include a Premium Only Plan and Flexible Spending Accounts, is a great way for employees to save money by using tax-free funds to pay for certain eligible expenses. Employee contributions also save the employer money by reducing payroll taxes. We've partnered with WageWorks*, a leading provider of consumer-directed benefits, to administer your clients' Premium Only Plan and Flexible Spending Accounts.
Benefits of Flexible Spending Accounts (FSA)
- Employees can set aside a certain amount of each paycheck into an account before paying income tax. Participants can use their account to pay for eligible out of pocket expenses for medical, vision, dental and more.
- Employers save on payroll taxes and can help cushion health insurance increases to lessen the impact on the employee's paycheck.
Premium Only Plan (POP)
This is a tax-savings plan for groups where employees can share in the cost of benefits through payroll deduction. POP plans allow employees' premiums to be deducted on a pre-tax basis.
Types of FSA Plans
- Premium-Only Plan – This is a tax-savings plan for groups where employees can share in the cost of benefits through payroll deduction. Premium-Only Plans allow employees’ premiums to be deducted on a pre-tax basis.
- Medical FSA – This account can be used to pay for eligible FSA expenses such as office visit copays, deductibles, prescription drugs, eyeglasses, dental care, orthodontics and much more.
- Limited Purpose FSA – This plan is great for employees who also participate in a Health Savings Account (HSA) or Health Reimbursement Arrangement (HRA). This account can be used to pay for eligible dental and vision services and participant and/or employer is still eligible to contribute to HSA or HRA.
- Dependent Care FSA – This account can be used to pay for eligible child care expenses.
Premium-Only Plan Proposal
Premium-Only Plan Application
Flexible Spending Account Proposal
Flexible Spending Account Application
*WageWorks is an independent company that offers Section 125 administration. This is not a Blue Cross and Blue Shield of Louisiana product or service. WageWorks is solely responsible for the services it provides.