TomFridrich

Thanks for the responses. I received the question from a colleague of mine and have little other information. Additionally, I am not that familiar with the requirements of Section 125 plans so I appreciate everyone's insight and taking the time to answer.

I have a question on eligibility to offer a 125 plan. In this situation the employer pays 100% of the health & dental insurance premiums for the FT employees, and offers coverage for spouses & dependents but it’s at the employee’s expense. Part time employees have to pay 25% - 50% of their health and dental insurance premiums depending on how many hours they work. The employer also offers a pre-tax Flexible Spending account for paying eligible medical, dental, eye glasses, and day care expenses. Insurance premiums are not eligible for this. The employer is a non-profit religious organization. I’ve had one “benefits person” state the employer can’t have a Section 125 plan because the employer pays 100% of the (FT) employee’s health and dental premiums. But I’ve had another “benefits person” state the employer IS eligible to have a Section 125 plan because some employees pay for spouse/dependent insurance premiums and most employees participate in the Flex plan. Does anyone have any insight they could share on this topic? Thank you in advance.