For employees who regularly have medical and childcare expenses, Section 125 plans provide a means to set aside pretax funds to use toward qualified medical and dependent care expenses. With a section 125 flexible spending account, employees can save on federal, state, and local taxes on items they already pay out-of-pocket.
For employers, this means decreased company payroll and tax liabilities for social security, Medicare, and unemployment. For those clients who participate in SIMA Payroll and Employee Benefit Services, we are able to set up, administer and manage these groups to the benefit of employees and employers alike.