Savings as Easy as 1-2-5

For years, businesses and employees have enjoyed the tax savings benefits of a Section 125 program.  Now, school entities nationwide are realizing the advantages of Section 125 plans, also known as cafeteria or flexible benefit plans.

TABS Program from PSBA Insurance Trust
The Pennsylvania School Boards Association Insurance Trust understands the need for controlling employee benefit costs.  To better serve our members, we have joined forces with Alternative Benefit Systems, Inc.  The TABS program now offers school entities a cost effective approach to design, implementation and administration of a Section 125 plan.

Section 125 of the Internal Revenue Code allows school districts the option of structuring everything from full cafeteria plan design to a simple cost-sharing of benefits on a tax-advantaged basis.

The PSBA Insurance Trust TABS program is ready to assist in designing a Section 125 plan that best serves school districts and their employees.

Section 125 Basics
In its simplest form, employees do not pay federal income or FICA taxes on their payroll deduction contributions for their employee benefits.  And, school entities do not have to pay the matching FICA taxes on these employee contributions.  This means big savings for schools and their employees.

For more information on our Section 125 plans please contact us