If your broker told you to get your Section 125 cafeteria plan tested, you are in the right place. We handle everything. You send us a spreadsheet.
Plans from $250 · Quick turnaround · All applicable tests covered · Corrective guidance included
Nondiscrimination testing is a compliance gap in most employer benefit programs. If you manage a book of clients with cafeteria plans, contact us to discuss broker partnerships.
Three plan types, two timing options. Pick what fits your plan, pay through Stripe, and we handle everything from there. First time? See how the process works before you choose.
When does testing need to happen?
Testing is required as of the last day of the plan year. You want results before that deadline so there is still time to act on anything that needs correcting. Once the year closes, the window to fix problems closes with it.
Does the IRS receive these results?
No. Results are retained by you as the employer as internal compliance documentation. They are never filed with the IRS and are only needed if your plan is audited.
What happens if our plan fails a test?
A failed test affects only the employees the law identifies as highly compensated. The rest of your workforce is unaffected. The financial consequences for those employees and the employer can be significant, which is why catching a problem early matters.
Our payroll provider said we are covered. Should we still test?
This is one of the most common sources of false confidence in this area. Administering a plan and testing a plan are two different things. Most payroll platforms do not perform nondiscrimination testing. Ask them specifically whether they ran the tests and can provide documentation.
What data do you need from us?
A census of everyone who worked during the plan year, including employees who left mid-year. For each person we need salary, benefit elections, and a few data points about their role. We provide a template and most employers complete it quickly.
How many tests does our plan need?
That depends on which benefits your plan offers. A basic premium-only plan has fewer required tests than a plan that also includes spending accounts. We determine which apply and run only those.