Employer Advantages
Companies are continually looking for ways to save on tax dollars, employee salaries and benefit expenses. Leggette Actuaries, Inc. has two tax saving plans that can help take some of the burden off of you. They are the Premium Only Plan and the Flexible Benefit Plan. These plans were created by the Revenue Act of 1978 and are governed by the Internal Revenue Code Section 125. They are often referred to as Section 125 Plans, Cafeteria Plans or Flexible Spending Account Plans.

These plans allow employees to pick and choose from a variety of insurance benefits that best meet their individual needs. Many of these benefits can be placed under the Cafeteria Plan, which means these premiums will be taken out of the employees’ paycheck pre-tax. When pre-tax dollars are used to pay for these expenses, you and your employees realize an increase in spending power and substantial tax savings. Employer sponsored payroll deducted insurance premiums; including medical, dental, disability, accident, cancer and group term life insurance, can qualify for your Premium Only Plan. Like the Premium Only Plan, the Flexible Benefit Plan allows you to receive pre-tax benefits, but you can also include up to five tax saving reimbursement plans. These include medical reimbursement accounts, dependent care accounts, adoption assistance accounts, tuition, and qualified transportation plans.