What are flexible benefits plans?
plans enable workers to select benefits they want or need from a package
of plans offered by their employer. Employers often include choices such as
retirement benefits like 401(k) plans, health, dental or vision insurance, and
reimbursement accounts through which individuals can pay for medical and/or
dependent care expenses. Employees pay for these benefits through pretax
payroll deductions; this lowers the employee’s taxable income and increases
their take-home pay while reducing the employer’s tax liability. There are
several different types of flexible benefits plans, including flexible spending
accounts and cafeteria plans.