P. Murphy & Associates, Inc.
Cafeteria 125 Plan for Insurance Premiums and Dependent Care
Features and Benefits

Cafeteria 125 Insurance Premium

This P. Murphy plan provides employees who have medical, dental and disability insurance premiums ability to pay these premiums with pre-tax dollars. These benefit is available for all employees immediately.

Whose insurance premiums can be covered under this plan?

P Murphy employees, their families, dependents and/or domestic partners.

What type of insurance premiums can be covered under this plan?

Your own insurance including health insurance premiums including HMO, PPO or POS, dental, vision, accident and disability insurance.

How does the P Murphy Cafeteria 125 insurance plan work?

First you enroll in the plan, designating the monthly premium total you are paying for the above types of insurance.

How are the deductions from payroll handled?

Once enrolled, PMA will deduct the designated total monthly insurance premiums requested on your enrollment form from the second paycheck of each month as Cafeteria “medical insurance premium” tax free dollars.

How do I get reimbursement for monthly premium that were deducted?

Once the deduction for the Cafeteria Plan premiums for the month is made and we receive a copy of your premium notice for month (or copy of your check written to insurance company or bank statement for automatic deduction for the premium), P Murphy will send you a check from the P Murphy Cafeteria Plan account payable to you for the amount of the deduction or the amount of the insurance premiums which ever is less. This money is not subject to federal, state or local taxes under current law.

Cafeteria 125 Dependent Care Plan

This P. Murphy plan provides employees ability to pay dependent care providers with pre-tax dollars. These benefit is available for all employees immediately.

How is dependent care covered under this plan?

If you are married, you can use this account if your spouse works or goes to school full-time.  Children under 13 or other dependents that are physically or mentally unable to care for themselves qualify under the IRS regulations.

What type of dependent care arrangement are authorized under this plan?

IRS regulations specify that the following dependent care arrangements  qualify:

    -Daycare center that provides care for more than 6 individuals
    -Educational institutions for pre-school children
    -Individuals over 19 providing daycare (you can’t claim this person as your dependent). 

What is the limit of deductions?

IRS allows deductions for actual expenses incurred but not to exceed $3,000.00 for one child or $6,000.00 for two or more children.

How does the P Murphy Cafeteria 125 insurance plan work?

First you enroll in the plan, designating the dependent care expenses you pay on a biweekly basis but not to exceed the annualized amounts shown above.

How are deductions from payroll handled?

Once enrolled, P Murphy will deduct the designated amount requested on your enrollment form (within IRS guideline limits) from every paycheck as Cafeteria “dependent care” tax free dollars.

How do I get reimbursement for dependent child care that was deducted?

Once the deduction for the Cafeteria Plan premiums for the month is made and we receive a copy of the dependent provider invoice (or copy of your check written to dependent provider or bank statement for automatic deduction for the provider), P Murphy sends you a check from the P Murphy Cafeteria Plan account payable to you for the amount of the deduction or the amount of the provider payment proof which ever is less. This money is not subject to federal, state or local taxes under current law.