FlexSystem - Section 125 Cafeteria Plan
Sometimes known as a Flexible Spending Plan, FlexSystem allows employees to pay for certain medical expenses on a pre-tax basis. By paying for these expenses before being taxed, employees lower their taxable income, pay less in taxes and increase their take-home pay. These expenses include:
- Employee contributions toward medical-related insurance premiums
- Medical-related expenses such as deductibles, co-insurance, or uninsured medical expenses.
- Dependent care expenses.
- FlexSystem offer employees and employers a win-win situation when it comes to saving money.
By offering FlexSystem employers are able to realize a number of benefits including: Reduced Payroll Costs - Social Security contributions are reduced for each dollar of employee participation!
- Cost Control - An employer can control the company's share of medical costs, without limiting employee choices.
- Address the Needs of a Diverse Work force - An employer can offer individually tailored benefits at little or no additional cost to the company.
- Recruit and Retain Quality Employees - An employer is viewed in a positive light by current and prospective employees because a benefit package is being provided with the employee's interests in mind.
With FlexSystem, employers utilize third-party administration services provided by TASC to handle the complete administration of their plans. TASC's services ensure employers of the proper implementation and operation of their plans. FlexSystem features timely reimbursement, phone enrollment assistance and an audit guarantee!
Today, over 4,000 Clients and over 50,000 Participants take advantage of the customized pre-tax benefits including medical and dependent care reimbursements through FlexSystem.
Click here to see how much you can save using our TAX SAVINGS CALCULATOR. Use this calculator to estimate your tax savings by participating in a Cafeteria Plan offered by your employer.
To use the calculator enter in estimated monthly amounts for your salary, insurance premiums, medical expenses and dependent care (if applicable).
Choose the state in which you live to ensure we calculate your savings using the appropriate tax percentage.
Based on the information you provide the calculator will show you how much your take home pay will be with and without participating in FlexSystem.
While our calculator will provide you a snapshot of savings based on your current situation and the estimates you provide, we encourage you to revisit the calculator on a regular basis to check your estimated savings.