Flexible Spending Accounts are allowed special treatment under section 125 of the Internal Revenue Code, Which allows employees a choice between tax-free benefits and cash compensation. Commonly referred to as Cafeteria Plans, Section 125 Plans, POP (premium only) and FSA plans, these plans allow employees to use pre-tax dollars to pay for certain qualified expenses. Paying for these expenses on a pre-tax basis allows employees to increase their net take home pay and creates a FICA tax savings for the employer.