Section 125 Cafeteria Plan (Administered by PEEHIP)
This plan is an outstanding benefit to all employees. The advantage of this plan is that you can redirect part of your salary to purchase certain benefits BEFORE it is subject to federal, state, and social security taxes. The Section 125 Cafeteria Plan is divided into two groups, Premium Only Plan and Flexible Spending Accounts. The plan year will be October 1st through September 30th. This allows you to save tax dollars in three ways. This program is an additional fringe benefit to all employees who wish to participate.
- Premium Only Plan - Gives eligible employees the opportunity to elect certain health and accident insurance benefits for themselves and their dependents, and to pay their share of the premiums with pre-tax dollars.
- Medical Reimbursement Account - Eligible employee can direct a maximum of $2,500 through payroll deduction with pre-tax dollars to pay for eligible health care expenses incurred during the plan year, not covered by PEEHIP. There is a $120 minimum annual contribution amount.
- Dependent Care Account - Eligible employee can direct a maximum of $5,000 to your account each year to pay for expenses so you (and if married, your spouse) can work outside the home or attend school full-time. If you and your spouse file income taxes separately, the most either of you can put into a program like the DCA is $2,500. There is a $120 minimum annual contribution amount.
For more information on available Section 125 Cafeteria Plans:
PEEHIP Flexible Spending Plans:
Flex Account Info