Section 125 Cafeteria Plan
Rogue Community College contracts with Total Administrative Services Corporation (TASC) as the third party administrator to administer its Flex Plan ("FlexSystem"). FlexSystem is an IRS Code Section 125 Cafeteria Plan that enables employees to pay for eligible expenses on a pre-tax basis – an instant savings of nearly 30% for the employee! Sometimes known as a Flex Plan or Flexible Spending Account (FSA), FlexSystem allows employees to pay for certain medical expenses on a pre-tax basis. By paying for these expenses before being taxed, employees lower their taxable income, pay less in taxes and increase their take-home pay. These expenses include:
- Employee contributions toward medical-related insurance premiums.
- Medical-related expenses such as deductibles, co-insurance, or uninsured medical expenses.
- Dependent care expenses.
Through open enrollment, employee elect to place funds in predetermined benefit accounts through salary reduction. When a qualified expense is incurred, the employee submits a request and receives prompt reimbursement. With on-line administration and submission of Requests for Reimbursement, daily check processing, and direct deposit, FlexSystem provides the industry’s fastest turnaround of requests!
FlexSystem offers employees:
- Requests for Reimbursement submissions via paper, fax, or on-line.
- 24-hour turnaround on reimbursements via Direct Deposit.
- Instant account status availability on-line or via FlexSystem’s voice response system.
- Toll-free customer service for Participants.
FlexSystem offer employees and employers a win-win situation when it comes to saving money.