Easy-to-use
Software
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.
Documents Included
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.
Support for Ruling
2005-42
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.
Requirements
of Administration
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.
Change in Life
Status
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.
Discrimination
Test
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.)
Reporting
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.
Customer Support
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.
Still not convinced you should offer a Cafeteria Plan?
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.
Synopsis
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. Order your
copy today! |
