Save Payroll Taxes — You will save 8% on every dollar
your employees redirect to the Flex plan. (This is true
for employees earning less than the maximum amount taxed
for social security.) For an employer tax-savings
example, click here.
Increase take-home pay — You can increase your employees’
share of insurance premiums without reducing their
take-home pay.
Cushion insurance rate increases — Many employers are
changing coverages and/or passing increases along to
employees. A Flex plan can be implemented with a change,
and lessen the impact on an employee's paycheck.
Lower your health insurance costs — An employer's
insurance cost can be lowered by coordinating changes to
your insurance plan with the installation of a Flex
plan.
Cut
your retirement plan expense — Since profit
sharing, 401(k) and pension plan contributions are based
on employees' taxable salaries, your retirement expenses
may be reduced.
Save
on other insurance premiums — Contributions for
other coverages (like workers' compensation or
disability) may be reduced because they are based on
employees' taxable salaries.
Plan
administration fees are deductible —
Administrative costs are tax deductible and can be paid
by you and/or your employees. Fees can even be collected
by payroll deduction on a pre-tax basis.
