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 EMPLOYER BENEFIT?

Payroll Tax Savings
A Flexible Benefit Plan allows employees to redirect part of their taxable payroll into tax-free benefits. Employers are not required to pay FICA or Medicare taxes on these benefit dollars. This reduces the company's payroll tax liability. Results are directly related to employee participation in the plan. Proper communication and employee understanding of the plan is critical. Here's how the employer saves. Example: One employee redirects $5,000 from taxable salary into tax-free child care dollars. The employer saves $382 in FICA and Medicare taxes in one year. ($5,000 x 7.65% FICA/Medicare = $382 in payroll tax savings). If ten employees participate at $5,000 per employee per year the employer saves $3,820 in FICA and Medicare taxes in just one year!

Most FlexMagic Consulting clients see a 200% to 500% or more return on their consulting fee investment within the first year of implementing a Flexible Benefit Plan. Existing plans often double their enrollment results and the company's savings when they use our services! Why? Because employees understand the benefits available to them and participate.

Employee Satisfaction
A Flexible Benefit Plan allows employers to diversify their benefits without increasing costs. Employees can buy their own benefits using tax-free dollars.

Benefit Cost Controls
Using a Flexible Benefit Plan employers can allocate a fixed benefit dollar amount for each employee for the plan year. A benefit budget is clearly established. The employee can then spend these dollars on the benefit choices offered during open enrollment. This eliminates budget surprises and worries throughout the year.