Cafeteria / HRA Plans

Flex Plans

Also known as Cafeteria Plans, Section 125 Plans or Flexible Spending plans, we offer a range of Flex Plan options ( listed separately below) and services. Here is a brief list of some of the Section 125 Cafeteria Plan Services we provide:

Preparation of Plan Documents
DVD presentation for employee meetings
Non-Discrimination testing
Employee informational packets
Completion of all tax forms
Benefits Payment System card
Statements for the employer and the employee
Easy access to our staff through a toll free number and email

Full Cafeteria

A Section 125 Full Cafeteria Plan allows participants to use pretax dollars to pay for group health insurance premiums, certain medical expenses and dependent day care expenses. By using pretax dollars, employees save income taxes and have more take-home pay. Employers add an employee benefit and save on payroll taxes. As a result, the cost of setting up and maintaining a plan is usually recovered quickly.
Requirements for a Section 125 Cafeteria plan include:

A Plan Document, Summary Plan Description, Board Resolution, Enrollment Forms and Claim Forms.
Routine claims processing and compliance review.
Annual Tax Forms and Non-Discrimination Testing.
A Cafeteria Plan benefits everyone regardless of company size. It is simple to set up and easy to administer.
For information on setting up a Cafeteria Plan, go to Getting Started.
For information about costs of services, go to Fees.
To review commonly asked questions, go to Question and Answers.
If you currently have a Cafeteria Plan and PBS does your administration and you need commonly used forms, click on Full Plan Forms. Forms can be printed off or cut and pasted to your favorite word processing document.
If you currently have a full Cafeteria Plan and PBS does your administration, and you want more information about the Metavante Benefits Payment System card, click on the link BPS..
For information regarding changes to over-the-counter-drugs effective 1/1/2011 click here.
Call us toll-free during normal business hours at 1-800-982-2012 or email us at cafeteria@profben.com.

Premium Only

The Premium Only Cafeteria Plan is the simplest form of a Cafeteria Plan. A Premium Only Plan is a win-win situation for employers and employees. Participants use pretax dollars to pay for their share of group health insurance premiums. By using pretax dollars, employees save income taxes and have more take-home pay. Employers add an employee benefit and save on payroll taxes. As a result, the cost of setting up a Premium Only Plan is usually recovered quickly.
Requirements for a Premium Only Plan include:

A Plan Document, Summary Plan Description, Board Resolution and Enrollment Forms
Annual Non-Discrimination Testing
A Premium Only Plan benefits everyone regardless of company size. It is simple to set up and even easier to administer.
For information on setting up a Premium Only Plan, go to Getting Started.
For information about cost of services, go to Fees.
If you currently have a Premium Only Plan and need a generic enrollment form, click on POP Forms.

If you have questions or need assistance, please contact us at 1-800-982-2012 or at cafeteria@profben.com.

Health Reimbursement Arrangements (HRAs)

These plans work well for employers who wish to provide help with the rising cost of medical care expenses for their employees. These plans offer several major benefits - unused funds can roll from year to year, no advance payment of claims, employees can plan for future expenses and control their current medical costs.

These plans can allow the employer to raise the deductible and lower premiums and yet keep employee deductible the same.

Under a Health Reimbursement Arrangement, or HRA, an employer reimburses covered employees for specified medical expenses using corporate funds. Employees do not pay taxes on these reimbursements and they are tax deductible for the employer. As the funds can roll from plan year to plan year employees can plan for the future and exercise control over their medical needs. A representative from our firm will be happy to talk with you and explain HRA Plans in more detail. Please call PBS, Inc. at 1-800-982-2012 or contact us by email cafeteria@profben.com.
Requirements for a HRA plan include:

A Plan Document, Summary Plan Description, Board Resolution, Enrollment Forms and Claim Forms.
Routine claims processing and compliance review.
Annual Tax Forms and Non-Discrimination Testing.
An HRA Plan is simple to set up and easy to administer.
For information on setting up a HRA, go to Getting Started.
For information about costs of services, go to Fees.
If you currently have a HRA and PBS does your administration and you need commonly used forms, click on Forms. Forms can be printed off or cut and pasted to your favorite word processing document.
Call us toll-free during normal business hours at 1-800-982-2012 or email us at cafeteria@profben.com.
Effective, regardless of company size
Employer has tax deduction
Employee receives funds as nontaxable
Employer sets eligibility, type of eligible expenses and any maximums
No employer reimbursements if there are no employee expenses. Unused funds may roll from plan year to plan year
Employees can plan future medical needs
Unused funds may roll forward from plan year to plan year.

Transportation Plan

How it Works: The transportation fringe benefit is similar to the pre-tax account that is available for medical costs and dependent day care costs.

Before the beginning of the Plan Year, employees elect to set aside a certain amount of pre-tax salary to cover qualified costs incurred in commuting to work. The employee will designate an amount (up to $230 per month for 2011) for mass transit expenses and another amount (up to $230 per month for 2011) for parking expenses. Separate reimbursement accounts are maintained for each category. Funds cannot be commingled or transferred between accounts (e.g., a transfer from the mass transit to the parking account is not allowed).

The aggregate maximum monthly exclusion for transportation and parking will total $460.00.

As the employee incurs qualified transportation expenses during the year, a claim form may be submitted for reimbursement. Any amounts remaining in the account at the end of the year can be carried over to the next year to be utilized for transportation fringe benefits if desired by the employer. Unused funds are not returned to the participants.

Who is Eligible: As a general rule, this transportation fringe benefit can only be provided by employers to employees. Common law employees and corporate officers are eligible. Two-percent shareholders of S corporations are not eligible. Qualified Expenses: Parking expenses that can be paid with pre-tax dollars include the cost of (1) parking a vehicle in a facility that is near the employee's place of work, or (2) parking at a location from where the employee commutes to work (e.g., the cost of parking in a lot at the train station so the employee can continue his/her commute on the train). Qualified mass transit amounts include the cost of any pass, token, fare card, voucher, or other item that entitles the employee to use mass transit for the purpose of traveling to or from his/her place of work. Transit may be via: A private or public mass transportation system.

A private mass transit enterprise conducted by a company or individual who is in the business of transporting people in a "commuter highway vehicle." Such a vehicle must have a seating capacity for six or more adults (not including the driver), and at least 80 percent of the vehicle's mileage must be from transporting employees to and from their place of work. Additionally, the vehicle must be used by a minimum of three commuters (not including the driver). The vehicle may be owned or leased by an employer for use by employees or a third-party provider. Employees can also own and operate commuter highway vehicles.

CLICK HERE FOR A TRANSPORATION ENROLLMENT FORM
CLICK HERE FOR A TRANSPORTATION CLAIM FORM