Bigger Benefits With
Tax Savings for You AND Your Employees

A Section 125 Cafeteria plan provides the option for employees to select certain benefits normally paid on an after-tax basis and, through salary reduction, pay for those benefits on a pre-tax basis. The result is tax savings for both you and your employees!

So-called “Cafeteria Plans” are typically structured to include a variety of benefits:

  • Premium Conversion Plans. These plans are for medical or health related insurance benefits. Enable employees to pay their share of health insurance premiums with pre-tax dollars.
  • Medical Flexible Spending Accounts. Allow employees to pay for eligible medical expenses, such as insurance deductibles and co-payments on a pre-tax basis.
  • Dependent Care Flexible Spending Accounts. Enable employees to pay for dependent care expenses on a pre-tax basis.

How does a Section 125 Plan benefit my company?

  • For each dollar of employee participation, your company’s Social Security contributions are reduced!
  • You can control the company’s share of medical costs, without limiting employee choices.
  • You can offer individually tailored benefits at little or no additional cost to the company, which in turn, is viewed in a positive light by the employees because a benefit package is being provided with their interests clearly in mind.

How does my company benefit from using TASC, Payroll Link’s strategic partner, to administer a Section 125 Plan?

With Payroll Links’ third-party administrative services, you and your employees receive all the benefits of a Section 125 Cafeteria Plan, without the administration and management hassles. Our strategic partner handles it:

  • Reimbursement requests are processed on a daily basis.
  • TASC will answer employee questions and assist all employees completing the enrollment forms.
  • An account report is printed on each reimbursement check.  They also provide quarterly and annual reports.
  • They ensure Section 125 Plan Compliance for non-discrimination testing and prepare the Form 5500.
  • Audit Guarantee:  For any enrolled employer or participant who has adhered to TASC’s plan procedures and parameters, yet has his or her Section 125 Cafeteria Plan challenged by the IRS, TASC will support and assist you in the audit.

Contact a Payroll Link Sales Representative to learn more about the plans and our strategic partner.