Mid-American Benefits, Inc. administers Cafeteria Plans for hundreds of Midwest employers.

One of the most underrated and underused employee benefits available for small businesses today are cafeteria plans, flexible spending accounts, or Section 125 plans. Because these benefits are free from federal and state income taxes, an employee’s taxable income is reduced, which increases the percentage of their take-home pay. And because the pre-tax benefits aren’t subject to federal social security withholding taxes, employers win by not having to pay FICA–or workers’ comp premiums–on those dollars.

Mid-American Benefits, Inc. provides the following administrative services for cafeteria plans:

  • Pre-tax health insurance premium deductions, also known as a Premium Only Plan (POP).
  • Out-of-pocket unreimbursed medical expenses, also known as flexible spending accounts (FSAs).
  • Dependent care flexible spending accounts

Mid-American Benefits, Inc. services include the following:

  • Plan Document Creation
  • Summary plan description (SPD) creation
  • Discrimination testing is offered through Mid-American Benefits, Inc. as an option