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HomeMy WebLinkAboutRes 04-07 Adopting an IRS Section 125 Cafeteria Plan for the Town’s Employees TOWN OF WESTLAKE RESOLUTION NO. 04-07 A RESOLUTION OF THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS, ADOPTING AN IRS SECTION 125 CAFETERIA PLAN FOR THE TOWN'S EMPLOYEES. WHEREAS, Participation in an IRS Section 125 cafeteria plan provides the Town's employees with additional benefits at no cost to the Town. Benefits can include flexible spending accounts for unreimbursed medical expenses, child care expenses, and pre-tax insurance deductions for health care and elective supplemental insurance. WHEREAS, The Town will benefit by reducing its payroll tax liability by 7.65 cents for every dollar an employee defers into the plan. Employees benefit by using pre- tax dollars for items and services currently paid for with after-tax dollars,thus increasing their take-home pay. BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: The Board of Aldermen of the Town of Westlake does hereby adopt an IRS Section 125 Cafeteria plan for the Town's employees. SECTION 2: This Resolution shall become effective upon the date of its passage. PASSED AND APPROVED ON THIS 9'DAY OF FEBRUARY 2044. &ZAaaAQ, ATTEST: Scott Bradle , Mayor a A - (Ying`e�,A_rosswy, Town Secr teary Trent O. Petty, To anager APPROVED AS TO F on a o rney