The FlexSystem SIMPLE Cafeteria Plan is a valuable benefit and a great option for small business owners with a limited number of employees. It is also pertinent for employers with highly compensated employees (who would otherwise be unable to participate because of the discrimination rules for standard Cafeteria Plans).
Why offer a SIMPLE Cafeteria Plan?
With the passage of the Patient Protection and Affordable Care Act (PPACA), small businesses may now sponsor a SIMPLE Cafeteria Plan and avoid discrimination testing if during either of the preceding two years the business employed an average of 100 or fewer employees. Participating businesses that grow beyond 100 employees may continue to maintain the SIMPLE Cafeteria Plan until they have exceeded an average of 200 or more employees during a preceding year.
Besides being a valuable benefit for small business owners with up to 200 employees, a SIMPLE Cafeteria Plan is also great for small businesses with highly compensated employees who previously could not participate in a standard Cafeteria Plan because of discrimination rules.
How does a SIMPLE Plan differ from a Section 125 Cafeteria Plan?
The administration of a SIMPLE Plan is very similar to that of a standard FSA Plan; both plans offer the same pre-tax benefits (see Flexible Spending Account).
The SIMPLE Cafeteria Plan requires an employer to make a Uniform Contribution to the Plan,
for each employee, an amount that is 2% or more of the employee’s total compensation. This is
true for employees who do or do not choose to make salary reduction contributions to the Plan.
Why choose FlexSystem?
FlexSystem takes the administrative burden out of offering a reimbursement program. We manage all aspects of administration and work closely with employers to ensure complete satisfaction, including seamless implementation, accurate ongoing administration, and dependable compliance.
Employers and employees alike enjoy unrivaled services and innovations with our FlexSystem Plans:
Call us at 1-888-595-2261, ext. 17730 or email firstname.lastname@example.org.
Current FlexSystem Clients and Participants: Please login to your MyTASC account,
select Contact Us, and submit a MyService Request, or call 1-800-422-4661 for assistance.
Simple FSA Simple FSA