This type of program is often called a cafeteria plan, and has been approved by the Internal Revenue Service. Because before-tax dollars are considered to be employer dollars for tax purposes, employers save on payroll taxes and other related employee expenses. Employees also save by reducing their taxable income. That way, they pay less in Federal, State and Social Security taxes and therefore, increase take-home pay. DAKOTACARE Flex is a separate benefit plan under which all employees have the opportunity to select one of the following options.
- Premium Conversion. This plan simply pays the employee's health care premiums with before-tax dollars. It may include any health, life, disability or other group sponsored policy through your company.
- Flexible Spending Account. With this plan, an employee can use before-tax dollars to pay for many unreimbursed medical expenses such as deductibles, co-insurance, dental care, vision care and more. In essence, it can be used to pay for any qualifying medical expenses incurred by an employee that is not covered under his or her group policy. It can also be used to pay for dependent care for your children or any other immediate family member who is in need of care.
For more information on any DAKOTACARE product or service, contact the DAKOTACARE Sales and Marketing Department at (605) 334-4000 or (800)325-5598, or your local DAKOTACARE agent. |
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