A Must-Have Compliance Resource for Employers

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.

Why do you Need
Non-Discrimination Testing?


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?




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Which Tests are Available?


Below are examples of some of the non-discrimination tests that
Flex can perform:

Cafeteria Plan

25% Key Employee Concentration Test

  • Ensures that no more than 25% of plan elections are made
    by key employees.

Eligibility Test

  • Ensures there are enough non-highly compensated employees eligible to participate.

Health Care FSA

Eligibility Test

  • Ensures there are enough non-highly compensated employees eligible to participate.

Dependent Care FSA

55% Average Benefits Test

  • Ensures that non-highly compensated employees are electing benefits at a rate of at least 55% to that of highly compensated employees.

5% Owners Test

  • Ensures that non-highly compensated employees are electing benefits at a rate of at least 55% to that of highly compensated employees.

Contact a Benefits Consultant

Non-Discrimination Testing Pricing

PLAN

PRICE

Section 125 Cafeteria Plan Testing $750
Section 105 FSA Health Care Testing $675
Bundled POP and Wrap Document $500
Section 129 FSA Dependent Care Testing $675
Bundled Pricing
(includes all three testing categories)
$2,000

Getting Started is as Easy as 1, 2, 3!


Request a proposal



Complete an employer application



Schedule an implementation call




That's it! You're ready to go.


Let Flex show you how easy benefits can be


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