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Contact Information
Provess Flexible Benefits
4050 Katella Avenue, Suite 213
Los Alamitos, CA 90720
Phone: (866) 639-5289
E-Fax: (866) 264-4093
E-mail: admin@provess.com
Palm Springs and Midwest Locations...
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SECTION 125 CAFETERIA "TAX-FREE BENEFITS"
ENROLLMENT INSTRUCTIONS
The following information will allow you to read about each category and complete the enrollment form for the benefits you want.
**IMPORTANT**
Some benefits listed here may not be offered by your company. Check with your Human Resource/Personnel Department.
What is a Section 125 Cafeteria Plan and how does it work?
It is a welfare benefit plan authorized by Section 125 of the Internal Revenue Code. You are given a chance to purchase benefits from a "menu" of tax-free benefits offered through the plan. Most importantly, you "pay for" these benefits from your salary BEFORE it is subject to Federal and State Income Tax or Social Security Taxes (FICA), thus reducing the amount of taxes you pay.
What "tax free" benefits are available?
First, any premiums you contribute on behalf of yourself or your dependents who participate in your company's health care insurance package will be paid out of gross income, not net income. That means your premiums are paid with "tax free" (pre-tax) dollars.
Second, you have the opportunity to participate in the Dependent Care benefit. This allows eligible employees to have their dependent, i.e., child care expenses taken out of their paycheck on a "tax free" basis. This benefit will save you a minimum of 25% of your dependent care expenses. Your children must be under the age of 13 and cared for by someone with a Social Security card or Federal Tax I.D. number. Under your plan each year, you can use up to $5,000 pre-tax, whether you have one or more children. There are certain guidelines to follow when using this account. You can only adjust your plan allocation if your child care provider increases your rates during the plan year, or you experience one of the family status changes. You cannot use the child care credit on your income taxes at the same time as the dependent care account under the cafeteria plan.
The Third plan benefit is to set up a Medical Reimbursement Account. This is a way you can be reimbursed from the first dollar you spend for medically related expenses. This includes expenses for you and your dependents. Several examples include reimbursements for co-pays, co-insurance, and deductibles covering medical, dental, vision as well as costs for prescription drugs, and many other non-covered medical expenses. Once you elect how much to allocate to this account, you cannot change until the beginning of the new plan year. You'll want to be very careful how much you set aside for this account because you want to use it up. Unused medical reimbursement dollars cannot be carried into the next plan year, thus any unused portion will be forfeited to your employer and, in some cases, may not be returned to you. In order to be reimbursed, you need to copy billing statements or receipts and submit them with the voucher that you receive each month. The voucher also provides you with a running balance of your account. Your company asks that you turn in your voucher with applicable receipts to the payroll department as soon as possible in order to be reimbursed.
And Fourth, you have the opportunity to participate by adding individual supplemental benefits to your overall benefit package. These additional benefits are available to you on a volunteer basis. However, once elected, these benefits must remain in force until the next open enrollment date. These benefits include:
° Accident/Illness Plan - Pays benefits directly to you at home. Covers fractures/dislocations, hospitalization, ambulance, disability income, medical expenses and accidental death. For you and your family.
° Cancer Plan - Pays thousands of dollars directly to you at home. Pays in addition to any medical insurance coverage you may have. Pays for many benefits that your medical insurance may not cover. For you and your family.
° Critical Illness - Pays benefits directly to you. Pays you a lump sum benefit for heart attacks, strokes, heart transplants, by-pass surgery, angioplasty, organ transplants, multiple sclerosis, Alzheimer's disease and more.
° Short Term Disability - Pays 30% of your income up to $3,000 a month. Benefits paid for 3 months, 6 months, 12 months or 24 months.
° Term Life Insurance - This can be for you and/or a spouse. You can add an additional $10,000 Child Term Rider. Premiums are level for 20 years.
° Universal Life Insurance - Affordable death protection, with cash build up for retirement or loans. Policies can also cover Critical Illness, Nursing Home or At Home Care, and more. Coverage for employee and/or a spouse.
° Also available - Heart/Stroke Insurance, SHOP, Group STD/LTD Disability Insurance, Dental, Vision.
*Not all of the above benefits are available to all employer groups
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Flexible Benefits
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January 2010