Medical Care Assistance Plan
Medical and Dependent Care Reimbursement
Internal Revenue Code Sections 125 and 129 permit employees to avoid Social Security, federal Income Tax and, in most cases, state Income Tax on reimbursement for certain out-of-pocket medical, dental, vision and dependent care expenses. These are expenses that your employees are already incurring, without benefit of a tax exemption, unless you sponsor a Cafeteria Plan.