Assistance to set up Section 125 plans
FCHP has partnered with Benefit Strategies, LLC to help you meet your Section 125 plan needs under health care reform. For eligible employers, this service is available at no additional cost!
Why do I need a Section 125 plan?
The law requires businesses with 11 or more employees in Massachusetts to set up a Section 125 premium-only plan, also known as a cafeteria plan. These plans allow employees the opportunity to pay for benefits on a pre-tax basis, lowering payroll-related taxes for both the employer and employee. Failure to adopt and maintain a Section 125 plan leaves employers open to potential financial penalties.
How we can help
FCHP can help eligible employers implement a Section 125 plan to meet the legislative requirement—at no charge to you. Benefit Strategies, LLC, will provide you with the necessary documentation, including Plan Documents, Adoption Agreements and Summary Plan Descriptions. Also, Benefit Strategies will assist you with any questions regarding set up and administration of Section 125 plans, which are available to both fully insured and self-insured groups.
Eligibility
To be eligible for this FCHP service, an employer must meet the following criteria:
- Offer FCHP medical coverage exclusively
- Purchase coverage for benefit-eligible employees directly through FCHP
How can I get help?
To set up a Section 125 plan or for help determining if your current Section 125 plan meets the requirements: