Our staff has over 50 years of combined experience in the cafeteria plan industry. Compensation Consultants, Ltd. staff is dedicated to share this expertise with you and your employees in the most efficient and convenient manner. Through our website, www.ccflex.com you can conduct research, contact us, call us at 1-800-447-1690 or Fax us at (218) 879-9684 to ask questions from our flex plan experts.

Our system facilitates all consumer-driven account types:

  • Health FSA (full & limited)
  • Dependent Care
  • Adoption Assistance
  • Premium Only Plans (POP)
  • Health Savings Accounts (HSA)
  • Health Reimbursement Arrangements (HRA)
  • Commuter Benefit Plans
  • VEBA Plans

Account balance availability features like pre-funding, rollover, forfeitures. etc. can be configured for any account type.

All account types can pay expenses with either traditional claim check payment. direct deposit and/or debit card payment.

Account types can be configured to pay any or all expense types which are assigned based upon merchant categories. Any expense type can be assigned to one or more account types, Expense types can be directed to pay from any account type(s) and in any account order. Benefit Account Linking and Stacking. FSA, HSA, and HRA accounts are user-configurable to handle limited claim types (i.e., EOB only) or some or all IRS Section 213(d) expenses. For example, a “dental only” FSA account may be linked to pay first, before the HSA account; and either account may pay or may not pay a specific claim type — like a dental or vision expense.
Employers have online service tools built into our system. By using the secure employer website, they can key enrollments, make eligibility changes, download reports, manage debit cards, and print administrative forms.

The following functionality is built into the system and its integrated employer web site:

Eligibility Management.

  • Add new employees
  • Change benefit elections, personal informa tion, or terminate employees from the plan
  • Automatically synchronize contribution discrepancies with payroll records

Employee Support.

  • Review a single participant’s account balance
  • Get a year-to-date report showing all participants and their account balances
  • Review the next payroll contribution report

Debit Card Services.

  • Turn on or off the use of the card for individual participants in real time
  • View unsubstantiated card balances prior to terminating employees
  • Suspend card abusers

Downloadable Reports.

  • Year-to-date and year-to-date by month
  • Contribution
  • Check registers
  • Payroll deduction summaries at enrollment
  • The system also prints these reports for postal mail or PDF for e-mail
Employee Website. Employees can use the employee website throughout the year to manage their account(s). The employee website:

  • Shows the specific benefits the participant has elected and eligible expenses associated with each benefit
  • Allows participants to view their elections, account balances, and transaction detail
  • Lets participants enter claims and manage debit card receipt requests
  • Allows newly eligible employee to enroll online

Transaction tracking.

Participants can track claims and card transactions through the employee website — showing date, provider information and amount. And, because debit card swipes are real-time, they can be viewed by participants from the same website that provides their flex account balance.

Employee statements.

Printed employee statements can be provided and/or included on employee check stubs. The system will convert statements into PDF format that can be e-mailed on demand. The system also sends debit card receipt requests by mail and e-mail.

Debit card management online.

Participants can:

  • Purchase or order additional debit cards
  • Activate their debit card
  • View detailed claims information entered manually or by card swipe
  • View card swipes requiring substantiation
  • Repay nonqualified expenses directly from a secure Website via personal credit card or e-check
  • Report lost or stolen cards
  • Create detailed receipt verification forms that arc stored online for look up, and can be printed by the participant as a cover sheet for claims submission
IVR telephone support.

An integrated Voice Response (IVR) telephone feature enables employees to:

    Receive account information
Mobile Application.

Smart Phone access to account information and claim submission

A Cafeteria Plan is a written plan in which participating employees can select qualifying benefits from a “menu” of choices. It allows eligible employees to pay for unreimbursed medical expenses, dependent day care expenses and certain employer-sponsored insurance programs with pre-tax dollars.

Compensation Consultants, Ltd. Flexible Benefit Plan is designed to allow an employer to establish a Cafeteria Plan for the benefit of its employees. Employee elections to a Cafeteria Plan reduce the employer’s social security taxes and in some instances, insurance premiums for coverage such as worker’s compensation and disability insurance, that are based on employees’ taxable salaries. The plan also allows the employee to recognize a reduction in his social security, federal income tax and (where applicable) state and local taxes.

The Flexible Benefit Plan allows the employee to make an annual election from current compensation to be redirected to a Flexible Spending Account (FSA). The employee’s redirected salary is “banked” either by Compensation Consultants, Ltd. or by the employer in an account maintained for the employee. When an expense is incurred for a qualifying benefit, the employee is reimbursed by Compensation Consultants, Ltd. from the dollars in the “banked” account. These reimbursements also escape federal, social security and (where applicable) state and local taxes.

The Flexible Benefit Plan can include all or any combination of the following: health insurance premiums (the employee portion), medical expenses not covered by insurance; adult and child day care expenses (the cost of care for a dependent while the employee works); and other employer-sponsored insurance coverage, including dental insurance premiums, disability and accident benefits and group-term life (under $50,000) insurance premiums.

Compensation Consultants, Ltd. can design any type of Cafeteria Plan arrangement including Flexible Benefit Plans funded by both employee payroll deductions and employer flex credits. Buying and selling of vacation days, pricing of benefits and Opt Out plans are all plan design features we can offer our clients. Consulting services are provided to determine the type of plan best suited for each employer’s needs.

Why Have a Cafeteria Plan?
  • Your employees’ morale will be enhanced.
  • Your employees will save money.
  • Your company will save money.
    • The plan must be in writing
    • A Summary Plan Description must be distributed to each plan participant.
    • Participant elections cannot be changed or revoked at any time during the plan year unless the participant has a qualified change in status.
    • Eligible participant expenses must be incurred during the Flexible Benefit Plan year.
    • Funds elected by participants, but unused at the end of the year, will be forfeited to the plan.
    • Because employees are not paying any social security tax on the portion of their income that is being redirected to the plan, employees’ social security benefits may be slightly reduced.
    • If disability insurance is paid on a pre-tax basis, any benefits received from the insurance carrier, by the employee may be taxable.
    • No more than $50,000 of employer-sponsored group-term life insurance may be provided to employees on a pre-tax basis.
    • The unreimbursed medical portion of the plan must qualify as an accident or health plan. Therefore, this portion of the plan must exhibit the risk-shifting and risk-distribution characteristics of an insurance policy. The maximum amount of reimbursement (annual election) under an unreimbursed medical flexible benefit plan must be available at all times during the period of coverage to the participant. This means the employer may pay out more in benefits than has been contributed by certain participants.
    • The plan may not discriminate in favor of Highly Compensated or Key Employees as to eligibility or benefits.
    • The plan must provide a written statement by January 31 of every calendar year showing the amounts paid or expenses incurred by the employer for dependent care benefits during the previous calendar year. This amount is shown on the employee’s W-2 Wage and Tax Statement.
    • Employer plans that contain a Health FSA Component must file a Form 5500 if there are more than 100 participants at the beginning of the plan year.
    • Regular corporations, partnerships, S corporations, limited liability companies (LLC), sole proprietors, professional corporations, and not-for-profits can all save money on taxes by establishing a Flexible Benefit Plan. While regulations prohibit the sole proprietor, partner, members of an LLC (in most cases), or an individual owning more than 2% of an S corporation from participating in the Flexible Benefit Plan, they may still sponsor a plan and benefit from the savings on payroll taxes.

How are employees reimbursed for their eligible expenses?

Once any employee has incurred an expense and submitted the completed claim form and appropriate third-party receipts, Compensation Consultants, Ltd. is responsible for processing the reimbursement. There are two methods to choose from when selecting a reimbursement option, Rapid Claims Service or Per Pay Claims Reimbursement.

Option 1 – Per Pay Claims Reimbursement

With this service, employees are reimbursed to coordinate with your paydays. Claims are sent directly to Compensation Consultants, Ltd. and paid out of the employer’s checking account. The checks are prepared and mailed directly to participants or to the Employer by Compensation Consultants, Ltd. A disbursement register is sent to you and you are responsible for reconciling your bank account.

Option 2 – Rapid Claims Service

This service gives employees the quickest access to their money and is the simplest for you, the employer. Each payday, the cash for employee deductions is electronically transferred to a claims paying account at Compensation Consultants, Ltd. Then each day, as employee claims are processed, we cut a check or make a direct deposit into the employee’s bank account. This method is by far the most cost effective for employers. Mailings, bank reconciliation, and check writing are all done by Compensation Consultants, Ltd. The employer need only notify us of eligibility changes and we do the rest.

Option 3 – Debit Cards

The use of a debit card provides the participant with “instant” reimbursement. When the participant uses the card at point of purchase to pay for qualified day care or medical expenses, the expenses amount is immediately deducted from their flex account in real time. If the claim can be automatically adjudicated, by the debit card clearing house the participant would not have to submit any substantiation of the expense. However, if the claim cannot be automatically adjudicated, the participant will be notified to submit receipts to verify the expense. The IRS reemphasized this procedure in the July 31, 2006 IRS Notice 2006-69.


Automated Account Hotline (913) 789-4600

Customer Service: (800) 447-1690

Report a Lost or Stolen TakeCare™ Debit Card: (866) 679-7649

Fax: (800) 123-4566

By Mail: Compensation Consultants, Ltd.
PO Box 720
Cloquet, MN 55720