BASE® 125 Cafeteria Plan
Overview
With the BASE® 125 Cafeteria Plan, you are capable of providing various funding options and giving your clients the ability to customize their benefit plan to meet their needs. BASE® provides employers with the plan design, implementation and compliance services. BASE® will help employers to maximize tax savings as well as making sure plans are in compliance with all government and insurance rules and regulations.
The BASE® 125 Cafeteria Plan allows employers to customize benefits and save money. Employers that sponsor a BASE® 125 Cafeteria plan can allow employees who are paying medical expenses, insurance premiums or dependent care expenses to do so on a pre-tax basis. A cafeteria plan can create sizable savings for both the employer and employee with these various options:
Flexible Spending Account (FSA)
An employee funded plan that allows tax savings on medical expenses, typically saving 25% on every dollar spent towards medical. The BASE® FSA also has a debit card option to provide employers with the ability to automatically reimburse employees for eligible pre-tax expenses. Not only can the debit card increase plan participation, but it can also save employers money and time.
Limited Purpose FSA
A form of flexible spending account that is strictly for reimbursing eligible dental and vision care expenses. This type of plan is for employees who are enrolled in a high deductible health plan, and are enrolled in a Health Savings Account (HSA). When enrolled in a Limited Purpose FSA, employees save tax dollars, and are also open to utilizing HSA funds for savings and investment opportunities.
Dependent Care Assistance Plan (DCAP)
Also known as a Dependent Care FSA, this plan is an account established by an employer to allow employees to set aside money from each paycheck on a pre-tax basis to pay for qualifying dependent child or elder care expenses.