Cafeteria Plan (Flex Spending)
USD 265 Goddard offers employees a Section 125 plan which allows you to pay your portion of the insurance premiums before taxes are calculated on your earnings. Your take home pay may increase because you do not pay federal and state income tax, FICA and Medicare tax on these expenses. Since deductions are before taxes are calculated, the employee’s taxable income is reduced. The employee’s take-home pay may increase because federal and state income tax, FICA and Medicare tax are not paid on the amount deducted.Since you pay your share of the group health and dental insurance premiums before taxes are calculated, you have limitations. You may not stop your insurance deductions or change how you are enrolled in the insurance plans, unless you have one of the following status changes: