Adoption Assistance Programs
Adoption Assistance Programs are designed to help adoptive parents meet costly needs. Reasonable and necessary adoption fees, court fees and other expenses can be reimbursed under an FSA program. In 2019, if you have more than $14,080 in qualified adoption assistance expenses you may be able to be reimbursed up to the FSA dollar limit established by your employer’s Cafeteria Plan to utilize the tax credit for additional expenses incurred.
Education Reimbursement Accounts
One of the most generous benefits a company can offer is an Education Reimbursement Account. This benefit program is a contractual agreement between employer and employee that outlines specific terms under which the employer may pay for the employee’s continued education. This benefit program varies greatly from company to company. Those who choose to participate in this program pay for out-of-pocket costs for the courses they enroll in. When the course is over, the employee may be reimbursed in full or part for tuition expenses. Depending on the employer, conditions for reimbursement may apply.
Premium Only Plans
Premium Only Plans (POPs) are the building blocks of the Section 125 plan. These plans allow employees to pay their health insurance premiums with tax-free dollars and save up to 40 percent on federal income taxes alone. This plan is a great solution to companies who want to offer tax benefits to eligible employees but who do not want to invest into a full pre-tax benefit plan. Examples of premiums that can be deducted from the employees’ paychecks on a pre-tax basis include but are not limited to health insurance, dental insurance, vision insurance, disability insurance, cancer insurance and many more.
Simple Cafeteria Plans
Under the Healthcare Reform package, eligible small employers are now able to establish a new type of cafeteria plan known as the Simple Cafeteria Plan. This new plan is an employer-sponsored plan which gives employees the option to select benefits or cash. For example, employees can choose tax-free benefit plans to fit their needs, or may instead elect to receive taxable cash payments in lieu of unselected benefits. Compliance with cafeteria plan discrimination rules have been problematic for many employers in the past. Simple Cafeteria Plans eliminate problems by providing safe-harbor plan designs that ensure compliance with non-discrimination rules.