Flexible Benefit Programs
As benefit costs continue to rise, more employers are turning to flexible benefit plans for a new approach to cost control. Flexible benefit plans can give employers control of the overall benefit program and employees control over their personal benefit plans.
Midwest Group Benefits Flex Plan allows employers to offer employee benefits under an IRS-qualified cafeteria plan. This cafeteria plan offers both employers and employees savings in payroll taxes through the payment of qualified employee benefit expenses with pre-tax dollars.
When employees' taxable income is reduced by the cost of eligible benefit expenses, the employer's taxable payroll is reduced. This means substantial tax savings for the employee in federal, FICA and, in most cases, state taxes.