Flexible Benefits Plans, also known as Section 125 plans, were created by Congress in 1978 as a result of Internal Revenue Code Section 125. This allows a tax break for payroll deducted premiums
which is also called pre-taxing. With Section 125, the average working American can afford the cost of adding benefits, like voluntary insurance. Flexible Benefits Plans help:
Address the benefits needs of America’s changing work force.
Contain the escalating costs of employee benefits programs.
And, most importantly, make benefits more affordable through preferential tax treatment. With a Flex Plan in place, employees have a choice between cash, a taxable benefit, and tax free benefits; which are free from federal and state income taxes. We offer our employers the opportunity to set up Flexible Benefits Plans to best fit their needs at little to no cost to them.
[Facilitator Notes: At this point you are setting the stage for the lesson. These points are covered in more detail in the other to lessons in this series
Positioning Flexible Benefit Plans To The Employer and Positioning Flexible Benefit Plans To The
3 Lisa Buonocore EDET 709 Big Redesign