Statewide Employee Benefit Programs - FICA Savings

NCFlex is a qualified cafeteria plan under the Internal Revenue Code Section 125, for eligible employees of the State of North Carolina, the University of North Carolina System and the North Carolina Community Colleges. All contributions for NCFlex benefits are made through payroll deduction before taxes are withheld. Therefore, because contributions are made on a pre-tax basis, employees who participate save 25% or more on plan products. As a result of this, the FICA savings, attributable to participation in the NCFlex program, are retained by the State to pay for the cost of administering the program.

The Office of the State Controller (OSC) has the responsibility for billing the participating agencies, universities and community colleges for their portion of monthly FICA savings. These billings are based on the payroll deductions provided on the Flexible Benefits Deduction worksheet. These worksheets are due to OSC by the 10th working day of the subsequent month.