Compare Types of Flexible Benefit Plans

Premium Only Plan
Employer sponsored payroll deducted insurance premiums, including medical, dental, disability, accident, cancer and group term life insurance, can qualify for your Premium Only Plan. This plan allows insurance premiums that your employees are paying for to be deducted on a pre-tax basis instead of after tax. Both you and your employees pay lower taxes.

Flexible Benefit Plans
Like the Premium Only Plan, Flexible Benefit Plans allow you to receive pre-tax benefits including four tax saving reimbursement plans. These include medical reimbursement, dependent care, adoption assistance, and qualified transportation plans. Each plan year your employees can designate an amount of money to be set aside in one or all of these accounts to be deducted pre-tax through payroll deduction.

Medical Reimbursement
Medical Reimbursement Accounts are used to reimburse expenses incurred for medical treatment for yourself, your spouse and eligible dependents. Eligible medical expenses include deductibles, co-insurance, copayments, prescriptions, dental and vision. These must be charges in excess of benefits reimbursed under your medical plan. Your employer sets the maximum. An eligible dependent is one you are able to claim on your tax return. Dependents need not be enrolled under the employee's health insurance plan to be eligible for reimbursement under a medical reimbursement plan.

Dependent Care Reimbursement
Dependent Care Reimbursement will reimburse you for custodial daycare expenses for eligible children and adults. The plan covers your dependent care expenses with pre-tax dollars. The maximum amount per calendar year is the lesser of:
$5,000 if you are filing a joint tax return or $2,500 if separate returns are filed
your taxable compensation after all compensation reduction elections
if you are married, your spouse's actual or deemed earned income
If you are single, the maximum amount is $5,000
Transportation Plans
Qualified Transportation plans allow participants to use pre-tax dollars to pay expenses associated with transportation . Contributions must be made before compensation is readily available. Elections cannot be changed for the coverage period, but can be made for a short period of time (i.e. monthly) as deifned by the employer. Employees may carry over unused amounts to later months as long as they are used for Qualified Plans. IRS Code 132 Qualified Transportation Plans include Transit Pass, Vanpooling and Qualified Parking.

Adoption Assistance Plans
The Adoption Assistance Plan can pay for costs associated with the legal adoption of a qualifying dependent. These fees include attorney fees, court costs, reasonable and necessary adoption fees and other expenses, which are directly related to the legal adoption of an eligible child. Legal adoption credit is available for expenses up to $10,160. An employee can take the reimbursement only once per child. If the process spans several years, you need to consider which year is the best time for taking the reimbursement. The adoption assistance program is a "use it or lose it" plan and funds must be used for adoption by the end of the plan year.

Tuition Reimbursement Plans