|
Outstaffing
Smart Pre-Tax Plans
The
IRS wants everyone to have health insurance! To
encourage employees to elect coverage through their
employers they allow employers to offer a Pre-Tax
Plan know as a Section 125. This allows you to elect
to pay for heath premiums, medical costs and dependent
care cost with pre-tax earnings. The Outstaffing
Smart Pre-Tax Plans have three components.
Section
125 Premium Savings Plan
Outstaffing
is pleased to provide all eligible employees an
excellent employee benefit that will increase your
take-home pay. The benefit is called the Premium
Savings Plan (also referred to as a Section 125
or Cafeteria Plan). The plan allows you to pay your
FULL health insurance related premiums with
pre-tax dollars. There are a few additional points
you need to know about the Premium Savings Plan:
- Participation does
NOT affect the cost of your health benefits:
- Annual tax withholding
(W-4) statement will reflect reduced taxable
income;
- Dependent Life insurance
does not qualify;
- Social Security
benefits will be reduced upon retirement, but
the impact will be minimal;
- Weekly Income benefits
(LTDI/STDI) will be taxed if premiums were deducted
before tax.
Section
125 Flexible Spending Accounts (TBA)
Section
125 Dependent Care Spending Accounts (TBA)
|
