| SECTION 125 DOCUMENTATION |
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Through implementation of a Section 125 Cafeteria Plan, employees can save by eliminating income taxes, and employers can save by eliminating matching FICA taxes on premium dollars redirected through the Cafeteria Plan. These Cafeteria Plans or Premium Conversion Plans are allowed by the Internal Revenue Service to reduce employer and employee payroll taxes. The Premium Conversion Plan is the most common Section 125 Plan and the easiest to administer once it has been established.
BCG can assist your organization draft the documents necessary to establish a Premium Conversion Plan including a draft Plan Document, a Summary Plan Description (SPD) that explains the Plan Purpose, Who is Eligible, How to Enroll and provides all required DOL information along with a Sample Election Form.
For organizations who already have a Section 125 Cafeteria Plan established, BCG can provide an amendment and/or restatement of your previously established Section 125 Premium Conversion Plan that is personalized for your institution accompanied by an updated Summary Plan Description (SPD).
For more information on Section 125 Plans, please contact Janice Besso-Tamecki, Trisha Chapman or Richard Siderko. |