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QUANTUM3D Section 125 / Flexible Benefit Plan Handbook 2010 Going Green We would like some assistance in our effort to Go Green. If you elect the flexible spending benefit we will send you a welcome
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Section 125 of the Internal Revenue Code allows employees to choose between cash and certain qualified benefits. This can include pre-tax contributions to health insurance premiums, flexible spending accounts, and other qualified benefits.
Employers offering a Section 125 flexible benefits plan are required to file the necessary paperwork and administer the plan for their employees.
Employers must provide employees with the necessary paperwork to make elections for their flexible benefits, and must ensure that they are in compliance with all IRS regulations regarding Section 125 plans.
The purpose of Section 125 flexible benefits plans is to allow employees to pay for certain benefits on a pre-tax basis, thus reducing their taxable income and saving money on taxes.
Employers must report the contributions made by employees, the benefits chosen by employees, and any changes to elections made during the plan year.
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