COBRA Solutions Cafeteria Plan Manager is a comprehensive software solution designed to assist employers in establishing and managing Section 125 Cafeteria Plans, also known as flexible spending plans. This type of plan, as defined by the IRS, allows employees to receive certain benefits on a pre-tax basis, effectively reducing their taxable income and increasing their take-home pay for expenses they are already incurring, such as medical and dependent care costs. For businesses, implementing a Cafeteria Plan can drastically reduce the company's tax bill, with the cost of implementation often recovered through tax savings within the first year. The software provides a "Win-Win" benefit for both the company and its employees, making normally unaffordable benefits accessible to small businesses and improving overall employee benefits packages. The system is designed to be user-friendly, guiding administrators through setup and ongoing management with intuitive interfaces and a "Things-To-Do List." It automates complex calculations, document generation, and reporting, significantly simplifying the administration of these plans. Cafeteria Plan Manager ensures compliance with IRS regulations, including support for Ruling 2005-42 and automated discrimination testing, providing documentation that plans pass required tests. It also generates essential documents, tracks employee account balances, and assists with year-end reporting, making the entire process efficient and straightforward.

Features & Benefits

• Easy-to-use Software
  • A Windows® based program designed for intuitive use, guiding users through every step with a mouse-click interface and a "Things-To-Do List" for setup assistance.
• Documents Included
  • Automatically generates and includes all necessary plan documents for compliance and communication.
  • Detailed Plan Document (governing body of the plan)
  • Personalized Summary Plan Descriptions (SPDs) for employees
  • Easy-to-understand enrollment forms
  • Monthly Account Statements for employees
  • Cafeteria Plan termination letters for departing employees
• Support for Ruling 2005-42
  • Offers optional support for the 2 ½ month extension for employees to submit receipts for FSAs, helping reduce funds left over due to the “use-it-or-lose-it” rule.
• Simplified Administration
  • Streamlines the administrative burden, from initial enrollment to ongoing management of reimbursements and changes.
• Change in Life Status Calculation
  • Automatically calculates new reduction amounts when an employee experiences a "Change in Life Status," simplifying complex adjustments.
• Automated Discrimination Testing
  • Performs required Section 125 discrimination tests by answering a few questions, ensuring the plan equitably benefits all employees and generates documentation of compliance.
• Comprehensive Reporting
  • Provides over thirty detailed reports for managing and monitoring the accounting elements of a Cafeteria Plan, including enrollment, reduction amounts, and reimbursements. Assists with generating reports for annual Form 5500 filing (if applicable).
• Dedicated Customer Support
  • Offers technical support via phone with a focus on first-call resolution, and email support with a 48-hour response time.