Benefits to service bureaus:
- Differentiate your service bureau from competitors
- Compete better against ADP & PayChex
- Offer enhanced services to existing customers
- Increase revenues
- Improve customer retention
- Partner with a well-known leader in pre-tax plans
Benefits for your employer clients:
- Payroll tax savings: Employers will save approximately 8% on every dollar employees set aside from their paychecks to budget for their flex plan. (This is true for employees earning less than the maximum amount taxed for social security.)
- Cushion health rate insurance increases: Many employers are passing along a portion of healthcare premiums to employees. A flex plan can be implemented with a simple change that will lessen the impact on an employee’s paycheck.·
- Lower your health insurance costs: An employers’ insurance cost can be lowered by coordinating changes to their health plan with the installation of a flex plan.·
- Save on retirement plan expense and other insurance premiums: When employees set aside pre-tax payroll deductions for a flex plan, employer contributions to 401(k), pensions and workers’ comp may also be reduced since they are based on lower taxable salaries.·
- Plan fees can be paid by employers or participants: Administrative costs are tax deductible and can be paid by employer or employees. Fees can also be collected by pre-tax payroll deduction from the employee’s flex plan account.
BENEFITS | PLAN DETAILS
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