What is a 125 plan?
Section 125 of the Internal Revenue Code, enacted by Congress in 1978, allows companies to give their employees the opportunity to pay for all or part of their health and life insurance, out-of-pocket medical expenses, and/or dependent day care costs on a pretax basis.

Why offer a 125 plan?
It is one of the most commonly requested benefits.

Employees reduce taxes because the pretax contributions
are not subject to federal, state, or social security taxes. Employees save from $.25 to $.50 in taxes for every dollar they contribute.

Employer appreciation. Employees experience a renewed appreciation for their employer. The company, in effect, is giving the employee a “raise” without the cost of the raise coming from the employer.

Gain greater control over escalating benefits costs.

Recruit and Retain Quality Employees – An employer is viewed in a positive
light by current and prospective employees because a benefit package is being provided with the employee’s interest in mind.

What about administering a 125 plan?
When PRO handles the administration, we process all claims, write and mail the checks directly to the employee, keep the claim records current and on file, and maintain a fast
turnaround of claims.

What is the Cost?
Through your relationship with PRO, you are able to offer a 125 plan to your staff at no additional cost! The bonus… Your employees get a valued benefit and increase their
take-home pay by reducing their taxable income.