Section 125 Plan for Optical Employees and Optical Employers

Helping pay for health care is one of the most valued benefits that optical businesses can offer their employees. Even small optical businesses have the opportunity to help their vision care employees with insurance premiums or medical bills. With section 125 plans, employees can save pretax dollars to use toward medical dependent care expenses, or to pay health insurance premiums.

For optical employers that are looking for a simple and effect way to add employee benefits, a section 125 plan is a good start. It’s especially valuable for organizations with a number of employees who regularly incur child-care expenses.

The pretax savings feature of section 125 plans helps employees to stretch their dollars. They can reduce their taxable income by setting aside a portion of their wages for health related costs. By paying less in taxes, employees in effect get a bonus that makes their health of dependent care dollars go further. The optical employer also saves on taxes, including FICA, federal unemployment, and on state unemployment taxes in most states, based on state tax regulations.

Small employers typically outsource the management of section 125 plans, which requires the plan administrator to ensure that the plans are not discriminatory based on IRS guidelines, review reimbursement claims, make payments and issue statements.

Source: Paychex

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Comments

  1. Linda Butler says:

    Can you make any comments on how the health care plan that is being proposed could affect
    optical? Iknow it’s a BIG subject. Just curious.
    Linda

  2. We will be reporting on Health care reform much later and yes it will effect optical

  3. We will be reporting more on the Health Care issues as we receive information. It is a big subject and can be confusing as well.