Every paycheck you receive from your employer has taxes taken out before you receive your take-home pay. In an effort to help working people reduce some of those taxes and to keep more of what they earned; Section 125 of the Internal Revenue Code was created. Money spent on medical expenses that are over and above what your medical insurance pays for, and dependent care expenses up to an annual amount of $5000, can be used for tax reduction. Of course, expenses where you receive any kind of reimbursement would not qualify for this program. Dependent care expenses are defined as your cost to provide child care, for children up to age 13, or the expense of caring for someone who cannot provide for themselves because of physical or mental challenges, so that you can work.
To benefit from this tax deduction your company must offer a program designed for that purpose, frequently called a cafeteria plan, because it gives you the opportunity to select several different options. Once you have enrolled in your companies plan, you would submit a claim, usually once a month, with copies of your expense receipts to the administrator of that plan and those expenses would be used as a tax deduction on your next paycheck, which would result in less tax being taken from that check and increased take-home pay for you.
We provide cafeteria plans to companies like yours and the administration and processing needed. Our plan is called the NOW Plan because you get your tax deduction now, right now. You need not be concerned about your company learning personal information about you because we submit only the total dollar amount of the claim to your company’s payroll department. All the information you submit to us is protected by Federal law under the Health Insurance Portability and Accountability Act (HIPAA) and cannot be released except where you give specific written permission.
It takes only minutes for you to enroll, everything is handled over this website, and you can start increasing your take-home pay by hundreds, if not thousands of dollars each year.