SECTION 125 CAFETERIA PLAN

The Section 125 Cafeteria Plan allows employees to utilize tax free contributions to pay for their out-of-pocket medical, dental, vision and dependent care expenses.

Employee contributions directed to a Section 125 Cafeteria Plan are EXEMPT from Federal, State and FICA taxes. This is not only a savings to the employee, but in addition, the employer will save their portion of the FICA taxes.

An employee may direct contributions to three separate accounts in the Section 125 plan:

1. REQUIRED EMPLOYEE INSURANCE PREMIUMS

2. OUT-OF-POCKET MEDICAL, DENTAL AND VISION EXPENSES

3. DEPENDENT CHILD CARE EXPENSES

Each employee may establish contribution levels to meet their own specific needs. As the employee incurs eligible expenses throughout the year, they submit proof of those expenses to Associated Benefits Corporation. The redirected dollars are then reimbursed directly to the participants.

Reimbursement Requests are processed on a weekly basis.

ABC provides a complete range of administrative services for Section 125 plans. These include record keeping and employee reports, plan management, government reporting, compliance testing, educational employee meetings, educational videos and our toll free customer service number .