Section 125 Cafeteria Plan Administration 101

Our Section 125 Plan service team has 37 years of combined third party administration experience and is made up of specialists with skills that are continually enhanced through annual continuing education. This provides our service team with cutting edge knowledge to insure your benefit and compensation strategies are developed and maintained to meet your objectives.

The Kempton Group Section 125 Plan allows the employer flexibility in designing his program. The employer can choose a simple salary reduction program for the pre-tax payment of the employee health care insurance premiums or can add a Medical Reimbursement Flexible Spending and/or Dependent Care Expense Account(s).

The Medical Reimbursement Flexible Spending Account allows an employee to elect to make “pre-tax” contributions into an account which allows the employee to be reimbursed for medical expenses not paid by insurance such as deductibles, co-payments, vision and hearing care, orthodontia and more. The Dependent Care Expense Account allows the employee to set aside “pre-tax” dollars to cover dependent care expenses paid by an employee for children, spouses, or parents up to a maximum of $5,000 per year.

Through the use of Section 125, both employee and employer benefit. By electing to reduce their salary to pay necessary health and child care expenses, the employee realizes a net increase in their take home pay since social security, federal and state income taxes are calculated off the reduced salary base

The Kempton Group has made accessing the Section 125 benefit as convenient and easy as possible for your employees.
We offer:

• Direct deposit for convenient reimbursements
• Automatic Rollover option that allows employee co-pays and deductibles to be rolled over to the Section 125 administrator for automatic reimbursement without having to file a separate claim
• Integrated website where employees can view claims status and claims history
• On-site enrollment assistance.