The Cafeteria Plan Manager is a Windows® based program allowing the user to perform tasks with the click of a mouse. No one wants to spend hours learning a new software program - so the program walks you through every step. A Things-To-Do List assists you in setting up your Cafeteria Plan by requesting needed data. It has been said that a picture is worth a thousand words - so graphics have been added to assist with data entry.
A Cafeteria Plan has certain document requirements which are included as part of the Cafeteria Plan Manager. A detailed Plan Document (which is the governing body of your plan) has been included for each Cafeteria Plan component. Summary Plan Descriptions (SPDs) which explain the plan to the employees is produced with a personalized touch. And, what’s a benefit program without a new enrollment form? The Cafeteria Plan Manager will even produce an easy to understand enrollment form.
After plan implementation and enrollment, the Cafeteria Plan Manager will keep employees up-to-date on their current account balances with monthly Account Statements. These statements will illustrate medical and dependent care receipts submitted for reimbursement, amount of the reimbursement check and remaining account balances. Even when an employee terminates employment, a Cafeteria Plan termination letter is produced explaining options and important time frames.
Ruling 2005-42 is an optional extension employers may offer employees to help reduce the amount of funds left over due to the “use-it-or-lose-it” rule associated with FSAs. If offered, the IRS Ruling would provide a 2 ½ month extension in which employees may submit receipts. (Do not confuse this extension with the time frame associated with submitting claims after a Plan Year ends). This 2 ½ month extension allows employees to submit claims with a date of service (or incurred) during the 2 ½ months following the end of a Plan Year.
If you elect to only offer a Premium Reduction Plan, there is
virtually no administration. After enrollment is entered for the
year, the Plan Administrator just needs to input terminations
and changes in life status.
Administration under the Medical and Dependent Care Reimbursement plans are more involved but still easy to manage. As employees submit receipts, you merely input the necessary information in the form shown below.
Next, you would need to reimburse the employees for eligible claims. The system will walk you through a three step process of 1) producing Account Statements; 2) prepare reports for payroll (detailing the amount of each member’s reimbursement check) and 3) posting the amount to the employee’s account. If you would like, the program will also produce the checks ready for distribution.
At some point in administration, an employee (or dependent) may experience a "Change in Life Status" and need to modify his/her annual reduction amount. This can be a difficult calculation to determine - but not with the Cafeteria Plan Manager! The system will walk you through the change and automatically calculate the new reduction amount.
When Section 125 was designed, the government wanted to
ensure that Cafeteria Plans were equitably offered to all
employees and not just "highly compensated employees." Tests
were design to determine if a Cafeteria Plan favors "highly
compensated employees." Discrimination Testing can be a
time-consuming difficult task - but not for the Cafeteria Plan
Manager! By answering a few, easy-to-understand questions, the
program will perform the tests and provide documentation that
your Cafeteria Plan passed with flying colors.
Finally, the Cafeteria Plan Manager can help your Plan Administrator generate reports needed for your company’s annual filing of Form 5500. (But if you have under 100 employees, you are no longer responsible for submitting a 5500 for Cafeteria Plans.)
The Cafeteria Plan Manager offers over thirty reports detailing the accounting elements of a Cafeteria Plan. Enrollment, reduction amounts, reimbursements and reports personalized by employee are just some of the reports designed to provide you with the management tools needed to monitor your plan.
COBRA Solutions Technical Support prides itself on seeing that each caller’s issue is resolved in the first phone call. If need be, data may be reviewed to determine the problem. In addition to phone support, users may e-mail questions to COBRA Solutions and shall receive a response within 48 hours.
It is a win-win situation for both the employee and employer. There are no negative aspects of the plan! Please download a demonstration version now and see how easy it is to start and administer your plan.
The Cafeteria Plan Manager was designed to assist you in taking eligible tax advantages for both you and your employees. You will find it easy-to-operate, powerful and it will probably pay for itself in the first month of operation. If you don’t offer a Cafeteria Plan, why not consider it now? The tax advantages to both your organization and employees are compelling. And the Cafeteria Plan Manager can make the administration efficient and simple.