Your company will recognize the following savings with a Cafeteria Plan.
- Your company saves nearly 10% on every dollar employee’s redirect to the Cafeteria Plan.
- Social Security taxes will not be owed on the amounts redirected by the participating employees to the plan. (This is true of employees earning less than the maximum amount taxed for Social Security.)
- Insurance premiums may be reduced for coverage that is based on employee’s taxable salaries.
- Combining certain changes to your insurance plan with the installation of an OMNI Cafeteria Plan can lower your company’s health insurance cost.
- And, of course, your company can earn interest throughout the year on the unclaimed contributions that employees deposit in the Cafeteria Plan.