Sec 125 Cafeteria/POP Documents
What is a Sec 125 Plan?
Section 125 Cafeteria Plans, including Premium-only Plans(POPs), allow employees to pay their healthcare premiums using pre-tax dollars, thus increasing an employee’s take-home pay and decreasing the tax liability for the employer.
What's the Catch?
For Sec 125 Cafeteria/POP Plans the IRS requires that the employer maintain and archive a Plan Document, distribute a Plan Summary to eligible employees, and perform nondiscrimination testing at the end of each plan year.
Why Should I Comply?
If the employer does not satisfy the IRS requirements for Sec 125 Cafeteria/POP Plans, the entire plan could be disqualified. At a minimum, any favorable tax treatment received under the plan could be lost causing employees to restate their income on their W-2 form.
The Benefits
Reviewed by Industry Leaders
The tool is compliant with EBIA interpretations and has been reviewed by a leading benefits attorney.
Personalized Plan Document
The tool the custom Plan Document, Plan Summary, Change in Election Form, and Salary Reduction Form.
Document Storage
Store compliance documents in the cloud for 7 years for easy archival and retrieval.
Distribution
Distribute documents to employees with one-click directly from the tool.
Customizable
Configurable component benefits (e.g, FSA, DCAP, Term Life, etc.) for full Cafeteria Plans.
HIPAA-Compliant system
Secure data exchange for sensitive Protected Health Information (PHI) data.
Features
Feature
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- Plan Document language up to date with IRS code
- Plan Summary email distribution within tool
- Salary Reduction Form and Change in Election Forms
- Document Repository for employee forms
- Guided workflow for plan information collection
- Compliance Checklist with yearly tasks
- Covers Safe Harbor and Non-Safe Harbor Plans
- Data Archived for 7 years
- Certified by leading Benefits attorney
- Simple Excel template for testing data
- Detailed Results Reports
- Recommendations to address testing failure
- Automatically Determines Highly Compensated Group
- Supports Top 20% Paid Group Election
- Calculations based on EBIA** interpretation of IRS code
Self-Service
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Full-Service
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