Products

Section 125

Section 125 is an Internal Revenue Tax Code which allows employers to provide three types of benefit plans on a pre-tax basis to their employees.

   Premium only plans (P.O.P)
   Spending Accounts
   Cafeteria Plans

**Camden Benefits has the resources to initiate these money saving programs for you.

Premium only plans (P.O.P)

Allows your employees' health care contributions to be deducted from their paychecks on a pre-tax basis. Pre-tax deductions reduce their FICA and income taxes, thus increases their take-home pay. You benefit, as well, from the reduced FICA contributions by approximately eight cents on the dollar. It makes health care cost-sharing less painful for you and your employees. It also improves morale by reducing employee taxes and enhances your organization's image and attracts new employees.

Spending Accounts

Spending accounts are benefit plans funded with pre-tax dollars that reimburse employees on a tax-free basis for eligible health care or child/dependent care expenses that otherwise are not paid for by an employer plan (also called flexible spending accounts and flexible reimbursement accounts).

Cafeteria Plans

Cafeteria plans means a written plan, following the rules of Section 125 and other IRS tax code sections, under which employees may choose from two or more benefits consisting of cash and qualified (tax-free) benefits.

Flexible benefits

Flexible benefits programs offer employees three types of benefit plans on a tax-favored basis and utilizes tax sections of the IRS code to allow employees to choose between cash and non-taxable benefits. Benefits to the employer include savings of the FICA contribution on the monies which the employees use for purchasing benefits.