Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

Flex Plan Web Page by HD4u6mus

VIEWS: 0 PAGES: 1

									Flex Plan Web Page



Chris, please insert this paragraph at the beginning of the text.



What is a 125 Flex Plan

A Flex Plan is an employer-sponsored benefit that allows employees to be reimbursed for
certain expenses tax-free. Employees save federal, state, social security and Medicare
taxes on those dollar amounts, thus increasing their take-home pay. Flex Plans are part of
the Internal Revenue Code, section 125, and are designed to give employees the
opportunity to pay for certain eligible living expenses with tax-free dollars. Before a
Plan Year begins employees elect to have a certain amount of their salary designated as
tax-free. These tax-free election amounts are to be used for eligible expenses in the Flex
Plan. Employers also benefit by providing a Flex Plan because they do not have to pay
FICA (7.65%) on employees’ Flex election amounts.

								
To top