Cafeteria Plans

Our Approach: Tax savings for both the employer and employee are significant.  National Benefit Services, LLC has provided quality benefit administration services on FSA and HRA plans for 20 years.  Our team environment combines years of experience with technological innovation thus providing efficient and accurate plan administration. 

Our Services: 

Types of Plans:

Cafeteria (Flexible Spending Account): Section 125 of the IRS Code is a valuable method of avoiding taxation for qualified medical and dependent care expenses.
 
Health Reimbursement Arrangement (HRA): HRAs are employer-paid reimbursement programs for health care benefits.  These plans allow employers to set aside a specific amount of money for employees to pay for health care expenses as defined by the plan.  All employer contributions to the Plan are tax deductible to the employer, and tax-free to the employee.

Premium Reimbursement Arrangement (PRA): The PRA plan allows employers to reimburse health insurance premiums including group sponsored insurance plans as well as individual health insurance policies outside the group.

Qualified Transportation Plan: Allows an employee to set aside funds to be used for pre-tax reimbursement for certain qualified transportation and commuter parking expenses for work.

Health Savings Account (HSA): The HSA is savings arrangement for employees who participate in a qualified high-deductible health plan (HDHP). Each year participants and employers can contribute tax-free dollars up to the indexed contribution limits plus catch up if eligible.  Contributions can be invested into mutual funds and other interest bearing arrangements. The funds can be used to pay medical and dental expenses incurred by the participant, participant's spouse and eligible dependents.

Under Section 125 of the IRS Code, employers may adopt a plan that will allow participants to set aside money, on a pre-tax basis, to pay for qualifying medical and dependent care expenses. Each dollar elected through this plan will generate a tax savings to the employee and employer.

A Premium Only Plan is set up to allow company-sponsored insurance options to be paid pre-tax.

A Full Flex Plan includes not only health insurance premiums but also health care expenses and day care expenses.





Health Care Expenses:
An employee may authorize the company to withhold money each month in an account to help pay medical/dental/vision care expenses that are not covered by insurance. For example, if an employee set aside $50/month, the employee would have $600 available for tax free claim reimbursement. Without the Plan, an employee would need to earn approximately $900 to pay $600.


Day Care Expenses:
If an employee is required to pay Babysitting or Day Care expenses so they can work, these expenses may be paid with pre-tax dollars. Simply authorize what the employee spends each month to be withheld from the paycheck, and then each time the employee files a claim, the employee will be reimbursed tax free!                
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Transit & Parking:
Allows an employee to set aside funds to be used for pre-tax reimbursement for certain Qualified transportation and commuter parking expenses for work.