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Section 125 Flexible Spending Program

Proactively plan for out-of-pocket qualified medical expenses while saving money on your taxes.

When you add Section 125 Flexible Spending Program to your group health plan, you reduce your company’s and your employee’s federal and state payroll taxes. Who doesn’t want to take advantage of that?

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What is 125 Flexible Spending Program?

125 Flexible Spending Program is an employee benefits program that allows companies to take advantage of Section 125 of the IRS Code to pay for certain medical and dependent care expenses like group insurance premiums, unreimbursed medical costs, and dependent care with non-taxable dollars.

How 125 Flexible Spending Program Saves Money

Employees voluntarily set aside money for medical care and dependent care expenses BEFORE payroll taxes are calculated. Those funds aren’t subject to federal, state or FICA taxes—which saves money. On average, employees save about $30 for every $100 they earn.

This program covers a generous list of eligible expenses, including:

  • Prescription Drugs

  • Copays and Deductibles

  • Vision & Dental

  • Chiropractic Care

  • Child/Dependent Care

  • In-Home Dependent Care

Are you ready to get the most out of your benefit dollars?

Ready to put more money back in your employees’ pockets? Want to reduce your company’s employment tax burden? A 125 Flexible Spending Program checks both of those boxes. Let MBA help you establish and manage your program today.

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