How Does the Employee Benefit?

How Does the Employer Benefit?

What Flexible Benefit Plan Services are Provided by FlexMagic Consulting, Inc?

What is My First Step? (Pre-Qualifying Checklist PDF Form)

HOW DOES THE EMPLOYEE BENEFIT?

The employee can choose to participate in the plan or not. If the employee participates in the plan part of his/her taxable wage is converted into tax-free benefits. This can be a big tax savings for the employee and provides an increase in take-home pay through reduced taxation. The following information summarizes the options that can be offered tax-free through a Flexible Benefit Plan.

Child/Dependent Care Expenses
Employees can pay up to $5,000 in child/dependent care expenses per family per year tax-free. In general, the tax savings for employees enrolled in a child/dependent care spending account can be greater than the federal income tax credit for care expenses. Eligible dependents must be children under age 13 and older dependents must be unable to care for themselves because of a physical or mental handicap. Eligible child/dependent care expenses are those expenses considered necessary to employment.

Out-of-Pocket Medical, Dental and Vision Expenses
Employees can pay their family's medical, dental and vision expenses tax-free within the medical spending account. These expenses can include glasses, braces, prescriptions, deductibles, co-payments, other out-of-pocket expenses not paid by an insurance plan and some over-the-counter medications.

Employee-Paid Insurances
This benefit allows employees to pay for their share of health, dental and vision insurance premiums with before-tax dollars. The employee's tax savings realized by participation in a Flexible Benefit Plan can reduce the cost of the employee-share of premiums by 25% or more.
Employee-paid disability insurance and & term life insurance premiums (to $50,000 death benefit) may also be eligible on a before-tax basis.
NOTE: Availability of these tax-free options are limited to the options provided within the employer's Flexible Benefit Plan design and must comply with state and federal regulations.