Whether your offer a full Cafeteria Plan, Flexible Spending Account (FSA) or a Premium Only Plan (POP), the Internal Revenue Service (IRS) requires that non-discrimination tests are performed. Flex offers a comprehensive compliance non-discrimination testing solution for each type of plan. With Flex, you have the option to do all or just a portion of the tests-so you only use what you need.
The Internal Revenue Service (IRS) requires non-discrimination tests to be performed for certain plans and benefits. The purpose of these tests is to ensure the plan(s) do not benefit highly compensated and/or key employees more favorably than the rest of the employee population. To the extent they do, highly compensated and/or key employees may lose the ability to participate in a particular plan or benefit, or they may be subject to taxes on the benefits for which they elect.
The non-discrimination tests generally focus on:
Eligibility: Are the same plans and benefits being offered
to all employees?
Contributions: Are employer contributions the same
for all employees?
Terms and Conditions: Are benefits made available under
the same terms and conditions to all employees
(e.g. the same waiting periods)?
Election Rates: Are benefits being elected disproportionately by top-paid employees?
Below are examples of some of the non-discrimination tests that
Flex can perform:
Cafeteria Plan
25% Key Employee Concentration Test
Eligibility Test
Health Care FSA
Eligibility Test
Dependent Care FSA
55% Average Benefits Test
5% Owners Test
PLAN |
PRICE |
|---|---|
| Section 125 Cafeteria Plan Testing | $300 |
| Section 105 FSA Health Care Testing | $300 |
| Section 129 FSA Dependent Care Testing | $300 |
| Bundled Pricing (includes all three testing categories) |
$750 |
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