(Internal Revenue Code Section 125)
Current government regulations allow employees to use a salary reduction process with which they may pay their health care premiums, medical reimbursements and/or dependent childcare expenses.
Federal taxes, Virginia income taxes and social security taxes (FICA) will be based on the reduced salary or wage. Election to participate in the Flexible Plan occurs annually in December. Election may not be revoked or changed during the year unless there is a change in family status.