A Section 125 Plan, often referred to as a Cafeteria Plan, helps employees keep more of their paycheck by reducing Federal and State taxes because it allows employees to pay for certain expenses with pre-tax dollars. The advantage to employers is the ability to offer plans that the organization would not otherwise be able to afford. In addition, every dollar run through a Section 125 plan reduces your organizations payroll.
- Cafeteria Plan Design & Implementation
- Cafeteria plans are not typical employee benefit arrangements and must meet specific requirements as established by the IRS Code Section 125 which can be overwhelming to many organizations. Advantage Benefits Group is here to help organizations with plan documents, plan summaries, enrollment forms, and nondiscrimination requirements. Further, we will help your organization implement, administer and maintain a cafeteria plan.
- Cafeteria Plan Testing
- Cafeteria plan sponsors are required to conduct annual testing to guard against discrimination. This testing is designed to prevent plans from being established solely for the benefit of highly compensated and key employees. Advantage Benefits Group will help facilitate annual testing that will ensure your organizations plan meets the requirements under the IRS Code Section 125.
- Cafeteria Plan Administration
- It is easy for an organization to feel overwhelmed when it comes to cafeteria plan administration; however, Advantage Benefits Group provides the tools and support you need to administer a cafeteria plan with ease. These tools include up-to-date Plan Document, Summary Plan Description (SPD), customized forms, easy-to-understand employee education materials, fast and friendly customer service, and much more.
- Form 5500 & Wrap Documents
- Each year, benefit plans with more than 100 participants generally are required to file an annual return/report regarding their financial condition, investments, and operations. The annual reporting requirement is generally satisfied by filing the Form 5500 Annual Return/Report of Employee Benefit Plan and any required attachments. For many years, a common technique for reducing the number of Form 5500 returns an employer needed to file was for the employer to wrap its benefit plans into a single plan. The principal benefit of the wrap document is the reduction of the number of Form 5500 returns an employer will need to file. However, the use of the wrap document may work against the employer by transforming several small welfare plans exempt from filing a Form 5500 into a single large welfare plan that must file a Form 5500. With Form 5500 and wrap documents frustrating almost all benefits managers, Advantage Benefits Group is here to assist your organization with all facets of Form 5500 filing and wrap documents.
