A non-discrimination test must be performed when implementing a flexible benefit plan. Employers must also consider the ownership of the company and determine who may participate. For instance, in a Subchapter S Corporation, anyone who is more-than-2% shareholder, or a member of an LLC, cannot participate in the pre-tax benefit plan.
Under IRS regulations, Section 125 plans (also known as Cafeteria Plans) benefit from favorable tax treatment. As such, there are certain non-discrimination rules in place to ensure that these plans do not favor highly compensated or key employees over other classes of employees. As an optional service, Flexible Benefit Administrators, Inc. can provide non-discrimination testing for Section 125 plans to ensure these plans are within compliance guidelines and recommend improvements, if necessary, should a benefit program not meet the requirements.
Our Services Include:
- Standard testing packages that include 25% Pre-Tax, or Section 125, Concentration Test and the Dependent Care 55% Concentration Test
- Additional testing available includes Group Term-Life and Self-Funded Plan Testing
If you are interested in a quote for testing services, please reach out to your team.
Hear It For Yourself
“It's so much easier to use our Flex Spending since FBA started to work with us. We love the turnaround time for claims, the card is so easy to use and not having to validate every single card swipe has been AWESOME!”L. McKenzie
“You guys have been amazing from the get-go. I truly do appreciate all that you are doing to make business like ours succeed!”J. Bollen
“Thank you so much for all of your help, you and your team are amazing!”J. Corrigan
“I want to thank you so much for all the help you have extended to myself and my husband. It was so nice to work with someone who cares about doing their job correctly and about offering the best service they can to their clients. I wish you the best in all that comes your way.”T. Johnson
“I have so enjoyed working with you and completing this last step in the process. You represent the gold standard of customer service and it is profoundly appreciated.”J. Hunter