Summer is fast approaching and this time of year everyone’s schedule seems to get a little busier. This also means summer activities and extra expenses. The BASE® 125 Cafeteria Plan is something employees can use to save tax dollars in the summer months, and throughout the year to help with extra costs of summer.
Employers are able to customize benefits and save money with the BASE® 125 Cafeteria Plan. By simply sponsoring a BASE® 125 Cafeteria Plan, employers can allow employees who are paying medical expenses, insurance premiums, or dependent care expenses to do so on a pre-tax basis. Due to the flexibility of this benefit, employers can choose one or more of the following pre-tax options to offer participants:
- Flexible Spending Account (FSA)
- Limited Purpose FSA
- Dependent Care Assistance Plan (DCAP)
- Premium Only Plan (POP)
Employees can utilize a DCAP during the summer while their kids are at daycare and no longer in school. They can also utilize the FSA for qualifying out-of-pocket expenses that could include anything from co-payments, prescription drugs, over-the-counter medical supplies, and more. This includes prescription sunglasses and first aid kits for those summer days! By sponsoring an FSA, employers provide another means for employees to pay for out-of-pocket medical costs through an employee funded benefit plan.
Anne M. shared with BASE® why her company decided to implement a 125 Cafeteria Plan.
“The BASE® 125 Cafeteria Plan allows employees the flexibility of choosing how much pre-tax money they want to set aside per their needs. Not only can our staff have a way to pay their dental and vision, but they can also get reimbursement for childcare and some supplemental insurance pre-tax. Plus, our BASE® representative is prompt and very thorough in getting answers to me, as well as any of my staff. The BASE® staff is excellent on every level.”
Creative benefit planning can help keep more fun in the sun with the BASE®125 Cafeteria Plan. For more information, contact us today at 1-888-386-9680.