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 a list of approved over-the-counter items try www.healthzone.com .
• Call us toll-free during normal business hours at 1-800-982-2012 or email us at cafeteria@profben.com .

Related Facts

• A plan document must be established and an SPD must be distributed to all participants.
• Plans cannot discriminate on the eligibility and benefits that are offered through a Section 125 Cafeteria plan.
• Full Cafeteria Plans are inexpensive to establish and can provide employees with substantial tax savings.