Employee Benefits: Flexible Benefits Plan
The MCC's Flexible Benefit Plan (FBP) allows for individual employee accounts that provide reimbursement of eligible medical, dental, vision and dependent care expenses. Section 125 of the Internal Revenue Code of 1986 permits choice-making between taxable and non-taxable benefits. In effect, employee contributions for benefits are treated as "employer" payments and are not subject to federal, state, local and FICA taxes. During the annual enrollment period, the employee determines whether to establish any or all of the accounts and how much money to contribute. When an expense is incurred, the employee submits a request for reimbursement to the claims administrator who will issue payment from the employee's account. In addition, the employee may choose to pay monthly medical and dental premiums through the FBP. Payments from the FBP represent non-taxable income to the employee.
For more information, please contact Linda Crenshaw by phone at (800) 395-5565 or via email at lcrenshaw@micatholicconference.org
