Employee Benefits

Overview

Lincoln 401k

Section 125/129 Cafeteria Plan

Group Health Insurance

Life Insurance

Dental Insurance

Vision Insurance

Other Benefits

Alliance Programs

Online Benefit Enrollment

125/129 Cafeteria Plan/Flexible Spending Plans

Cardinal’s Section 125 Plan allows employees to use tax-free dollars for health insurance premiums, un-reimbursed medical and dependent care expenses. The plan is administered by Total Administrative Services Corporation. 

By participating in the plan, employees can reduce Federal, State and FICA taxes nearly 30% on those dollars contributed to the plan.  This savings increases the employee’s purchasing power as well as offsets the increasing cost of medical insurance, out of pocket medical expenses and childcare or dependent care.  There are no additional tax forms to file, as the employee’s W-2 will reflect the lower taxable income.  Best of all, there are no fees or additional costs associated with this benefit.

Who is eligible for the plan?

• Cafeteria plans are for the benefit of employees only.
• For an employee to be eligible they must meet the following criteria:
• 21 years of age or older.
• Minimum of 90 days of full time employment (minimum 30 hours per week).
• Any client that has a signed agreement to offer Cardinal’s plan to employees.
• Sole proprietors, 2% owners in an S Corporation, Partners, LLP and LLC owners, are not eligible.

How does the plan work?

When an employee enrolls in the plan, they will determine the amount to be deducted from their gross earnings per pay period, which will then be submitted to the plan administrator by Cardinal.  They also identify, at that time, if they are utilizing the health premium, un-reimbursed medical and/or dependent care reimbursement or both. Once an amount is determined and payments into the plan begin, changes can only be made during open enrollment or when a qualifying event occurs.

Once an employee has paid for their monthly insurance premium, out of pocket medical or dependent care cost, a proof of payment is submitted to the plan administrator for reimbursement.  For both qualifying medical and dependent care expenses an employee can only collect up to the amount they have contributed.

• Dependent Care Reimbursement (Section 129)
• Designed to allow employees to pay for their dependent care expenses, allowing the employee and spouse to be gainfully employed.
• Care of an adult child or disabled spouse can also be considered qualified dependent care.
• Claims must be incurred during the plan year in order to qualify as eligible expenses.