Section 125 Cafeteria Plans

Section 125 Cafeteria Plans

Employers establish a menu of benefits by electing to offer group health or accident insurance, group term life insurance, disability benefits, dental insurance, vision insurance, or voluntary benefits.

Cafeteria Plans provide participants a variety of money saving options!

What are Cafeteria Plans? 

Governed under Section 125 of the Internal Revenue Code, Cafeteria Plans help you and your employees save money by using tax-free dollars to pay for group health insurance premiums, out-of-pocket medical expenses, the cost of dependent care and more. Section 125 "Cafeteria Plans" have earned their nickname because they allow employees to choose benefits a la carte from a menu of benefit offerings. 

How Cafeteria Plans Work 

Employers establish a menu of benefits by electing to offer group health or accident insurance, group term life insurance, disability benefits, dental insurance, vision insurance, or voluntary benefits. A Cafeteria Plan may also include a Premium Only Plan (POP), a Flexible Spending Account, Transportation and Parking reimbursement, and Dependent Care Assistance Plan as benefit options. Employees have the freedom to choose the options that best benefit them. 

Tax Advantages 

Employers save on payroll taxes (FICA, FUTA and SUI) and worker's compensation premiums. 

Employees save on Federal, State and FICA taxes. The average employee saves 25-30% by funding benefits on a pre-tax basis through the Plan. When you consider the average family pays $800 - $2,500 per year on medical expenses, that's a significant savings! 

Related to: TPA, HR Consultant, HR Consulting Firm

Reviews

Highly impressed with their level of expertise and outstanding customer service.

Highly impressed with their level of expertise and outstanding customer service.

I highly recommend TPS Group and their quality third-party administration for our 403(b) plan. During our long relationship with TPS Group, we have never failed to be impressed with their level of expertise and outstanding customer service. They keep their promises and it’s easy to work with them. Having our own rep Lauren McNabb is a plus!

- Don Senecal

"Extremely Helpful to Our Business"

"Extremely Helpful to Our Business"

Malinda deserves special recognition. She is prompt, courteous, and professional. We find her to be extremely helpful to our business.

- Angela Simino

"Wonderful To Work With"

"Wonderful To Work With"

My go to professional is Des. A wonderful person to work with. We can count on him to handle all of our needs.

- Andrea Blakeslee

"Answers All Of My Questions In A Clear Manner"

"Answers All Of My Questions In A Clear Manner"

Our case administrator, Susan, has been absolutely wonderful and is a joy to work with. She is very knowledgeable, patient, answers all of my questions in a clear manner, and is professional.

- Kathy Townsend

Extremely Valuable to Myself and Our Company

Extremely Valuable to Myself and Our Company

Kathleen has helped me gather info and understand text so many times and is extremely valuable to myself and our company.

- Elizabeth Robison

Very Responsive And Clear To Requests And Questions

Our service representative, Carol, is outstanding and very responsive and clear to requests and questions. Very professional yet pleasant.

- Jane Surmecewicz

They are a pleasure to work with and we highly recommend their services.

They are a pleasure to work with and we highly recommend their services.

For many years we’ve relied on TPS Group’s extensive knowledge and industry expertise to keep us in compliance with state and federal regulations as well as changes in the law. Their attention to detail is just what we need to keep our business operations running smoothly. They are a pleasure to work with and we highly recommend their services.

- Dan Neal

TPS filled in the gaps within our small HR department

Working with Kim and her talented team helped us fill in the gaps within our small HR department. I strongly recommend TPS for HR tasks that don’t warrant hiring a full-time team. Thanks again Kim!

- Jake F

Knowledge and Expertise

Excellent customer service can be hard to find, but not with TPS Group! I know when I do business with Phil Coco, I can expect a quick response. I rely on his knowledge and expertise, and highly recommend TPS Group for their pension services.

- Mark Catullo

Dependable, experienced, and professional

Dependable, experienced, and professional

Dependable, experienced, and professional, our TPS Group recruiter was an invaluable resource, helping us locate and vet quality talent.

- Tyler R. Vunk

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