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BASE® Excepted Benefits 125

• Overview
• Eligibility
• FAQ

Overview

The BASE® Excepted Benefits 125 plan is available to an employee if they pay for individually owned supplemental policies. With the Employee Paid Excepted Benefits employees can have individually owned excepted benefits deducted from their paycheck on a pre-tax basis. The Employee Paid Excepted Benefits plan is designed to provide additional benefit options through a Section 125 Cafeteria Plan.

This plan allows employees to pay for their individual supplemental policies, such as dental, vision, etc., with pre-tax dollars. Employees know in advance how much will be available for reimbursement of qualified excepted benefits, which also provides employees with a more active role in making medical decisions.

Here are some reasons why an employer would adopt a BASE® Excepted Benefits 125 plan:

Offer additional benefits to employees besides health insurance:
Many employers are faced with growing competition for good employees. Adding this type of plan can help to enhance current benefit plans or provide another type of benefit to cover the cost of medical expenses. The ability to provide an employee benefit can help retain and attract quality employees.

The BASE® Excepted Benefits 125 is flexible to fit a variety of needs:
With the BASE® Excepted Benefits 125 plan, employers benefit by having a flexible benefit plan that can be tailored to fit employee needs. This plan is portable and works to complement current benefit plans. Employees can select any type of excepted benefits plan, such as supplemental policies, as well as vision and dental premiums.

There is no direct funding by the employer:
The Excepted Benefits 125 is 100% funded by the employee. Reimbursements are made on an accrual basis at no risk to the employer.

Financial benefits to the employer:
The employer does not pay Medicare or Social Security on the amounts that employees choose to have withheld from their paychecks on a pre-tax basis.

From initial set-up to maintenance over the life of the BASE® Excepted Benefits 125, your clients will find that we take care of all the work for them and provide all of the necessary documentation.