As benefit costs continue to rise, more employers are turning to flexible benefit plans for a new approach to cost control. Flexible benefit plans can give employers control of the overall benefit program and employees control over their personal benefit plans.
Midwest Group Benefits Flex Plan allows employers to offer employee benefits under an IRS-qualified cafeteria plan. This cafeteria plan offers both employers and employees savings in payroll taxes through the payment of qualified employee benefit expenses with pre-tax dollars.
When employees' taxable income is reduced by the cost of eligible benefit expenses, the employer's taxable payroll is reduced. This means substantial tax savings for the employee in federal, FICA and, in most cases, state taxes.
Midwest Group Benefits Flex Plan Offers Your Company Two Options:
- Premium-Only Plan — This plan enables employees to pay for their premium portion of employer-sponsored insurance benefits on a pre-tax basis. This amount is automatically deducted from the employees' salaries before taxes, thus reducing taxable income while increasing the employees' take-home pay. Click here for more information.
- Flexible Spending Account (FSA) — This plan allows employees to pay for dependent care and/or out-of-pocket health care expenses not covered by insurance with pre-tax dollars. The FSA works as a budgeting tool to enable employees to plan for their out-of-pocket dependent care and/or health care expenses for the year and be able to pay for those out-of-pocket expenses before taxes. Click here for more information.
- With Midwest Group Benefits Flex Plan everyone wins. Payroll taxes are reduced for the employer, while more take-home pay goes to employees.