Name: Christian Schools International
Price range: $

CSI Flexible Benefits Plan

(Section 125 Plan)

Flexible solutions for your school employees

Flexible Benefits Plan

Advantages All Around

Established under Section 125 of the Internal Revenue Code of 1986, a group flexible spending account plan benefits employers and employees alike. Participating employees benefit when they increase their spendable income, while participating employers benefit when they reduce payroll taxes.

The following spending accounts allow employees to pay benefit-related expenses with pre-tax dollars:

Premium Account

Contributions to the employer-sponsored benefit plans. If your employees contribute to the cost of employer-sponsored benefit plans such as health and dental plans, your school may deduct the premium on a pre-tax basis.

Health Care Flexible Spending Account (FSA)

Covers eligible health care expenses that are not reimbursed by any medical, dental, or vision care plan for the employee and their dependents.

Dependent Care Flexible Spending Account (FSA)

Covers childcare, preschool, and before- and after-school care, so that the employee and spouse can work or attend school full-time.

Cash In Lieu of Benefits

Employees receiving a cash payment to opt out of the school’s insurance plan are required to enroll in a Section 125 Plan. Employees do not contribute to this account. The school pays the cash incentive directly to the employee.

How It Works

We can accommodate both a September 1 plan year and a calendar (January 1) plan year. For schools participating in either the premium-only plan or the full-flex plan, insurance premiums and HCSA contributions can be deducted from employee paychecks on a pretax basis. For schools participating in full-flex, employees elect (prior to each plan year) the amount of salary they wish to contribute to the health care flexible spending account and/or dependent care flexible spending account. These amounts are contributed via pre-tax payroll deductions throughout the year. As employees incur eligible expenses, they submit claims to the plan. The plan then reimburses these expenses.

Since contributions by employees are not considered gross income, they are not subject to federal, Social Security and, in most cases, state and local income taxes. Therefore, employees effectively increase their spendable income. Except for the carryover amount, federal law requires that all spending account contributions be spent on expenses incurred during the plan year; contributions are otherwise forfeited.