Overview
Section 125 of the Internal Revenue Code offers substantial savings to employers through "pre-tax" medical and child care benefits. While employees gain more disposable income, employers reduce social security taxes, and other related employer expenses.
The Sheakley Group of Companies has been providing benefit administration to employers for over 40 years. Founded in Cincinnati, Ohio, in 1963, we have been administering Section 125 Flexible Benefits Plans since 1988.
Flexible Benefits Participants: click on Participant Center for account management.
The IRS has issued new guidance on Over-the-Counter and Non-Prescription Medications.
For a printable version of the Eligible and Non-Eligible Expenses, please click here.
Effective for taxable years beginning 01/01/11 the nontaxable reimbursement of Over-The- Counter (OTC) medicines from health FSAs will be eliminated, unless accompanied by a doctor’s prescription (excluding insulin). However other OTC non-medicines needed to treat a medical condition such as bandages and contact lens solutions will still be covered without a prescription. This change applies to all participants regardless of their companies plan year. OTC expenses incurred prior to 1/1/11 will be reimbursed without a prescription regardless of when the expense is submitted (within the coverage period).
The mySource debit card will no longer be able to be used to purchase over the counter medicines beginning 1/1/2011. Doctor approved OTC purchase will need to be submitted via a claim form with a copy of the prescription. |
For more information, please contact the plan administrator:
Sheakley Pension Administration, Inc.
Flexible Benefits Division
1-800-877-6630
email: 125@sheakley.com
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