Davie sits in the western Broward County corridor, and its behavioral health labor market has a distinctive characteristic that sets it apart from most Florida cities: Nova Southeastern University's College of Psychology and related behavioral health programs operate here, producing a steady pipeline of newly credentialed LMHCs, Licensed Mental Health Counselors in training, and doctoral-level practitioners. Private therapy practices in Davie regularly hire NSU graduates who are accumulating supervised hours toward full licensure — a workforce segment that highly values structured benefits, professional mentorship, and organizational legitimacy. A Section 125 cafeteria plan is one of the most visible signals of that legitimacy.
Beyond the recruitment angle, a Davie therapy practice with eight to fifteen employees can realistically save $4,000–$7,000 in combined FICA taxes annually through a properly structured Section 125 plan. The cost of administration — typically $400–$900/year for a TPA — is a fraction of those savings.
Broward County's cost of living means clinical staff in Davie face meaningful housing and childcare expenses. New therapists completing supervised hours are typically earning $40,000–$52,000 — enough to benefit substantially from FSA elections but not so much that the marginal tax savings feel trivial. A practice that offers a health FSA alongside pre-tax health premiums provides a concrete, calculable financial benefit that candidates can compare directly across employers.
NSU graduates completing their post-degree supervised hours are often shopping among several Davie and Fort Lauderdale practices simultaneously. A benefits package that includes a $3,300 health FSA, pre-tax dental and vision, and a clear employee handbook signals that the practice is professionally run — a meaningful distinction when candidates have multiple offers at similar salary levels.
Step 1 — Select your benefits. The standard Davie therapy practice menu: group health, dental, and vision premiums (pre-tax via POP); health FSA at up to $3,300; dependent care FSA at up to $5,000 per household. Consider including limited-purpose FSA options if any employees use HSA-compatible high-deductible plans.
Step 2 — Adopt the plan document before enrollment. A written plan document is legally required. It must be dated, signed, and in effect before any employee makes an election. Backdating is prohibited and constitutes tax fraud. TPAs in the Broward County area typically provide Section 125 plan documents as part of their service — compare costs against standalone document services, which may charge $300–$500 as a one-time fee.
Step 3 — Conduct open enrollment before the plan year. Distribute enrollment materials at least 2 weeks before the plan year start date. For Davie practices that hire NSU graduates mid-year, include a new-hire enrollment window (30 days from hire date) in the plan document so that new employees can elect benefits without waiting for the next annual enrollment.
Step 4 — Add carryover provision if desired. The IRS permits plans to allow employees to carry over up to $640 in unused FSA funds to the next plan year. This provision must be explicitly written into the plan document. Adding it significantly improves employee participation — many employees are reluctant to elect a large FSA if they fear losing unused funds. Include it if your TPA confirms it is incorporated in their plan template.
Step 5 — Integrate payroll and run tests. Confirm pre-tax deduction coding with your payroll provider, then run the three annual nondiscrimination tests before year-end. For Davie practices where clinical staff (mostly licensed or license-eligible therapists) earn more than administrative staff, the eligibility test is the one to watch — ensure that administrative staff are offered enrollment on the same terms as clinical staff.
Florida is an at-will state. Therapists in supervised-hours roles are sometimes hired as W-2 employees — verify that any staff member who is on payroll (not 1099) is included in Section 125 eligibility calculations for nondiscrimination testing purposes, even if they elect not to participate. Their presence in the eligible pool affects your test results.
Florida's minimum wage in 2026 is $14.00/hour. Most clinical staff in Davie practices earn well above this threshold, but hourly administrative, billing, and scheduling roles sometimes fall closer to it. Verify that salary reductions for FSA elections do not push any employee below minimum wage thresholds.
Workers' comp is required at 4 or more employees. At that size, the practice almost certainly benefits from a formal Section 125 structure. If you're at 3 employees, it still makes sense to have the plan document in place so the transition is clean when you hire your fourth.
Including NSU-supervised interns as plan participants: Unpaid interns or stipend-paid trainees are not W-2 employees and cannot participate in the Section 125 plan. Including them in enrollments creates tax liability. Only W-2 employees on regular payroll are eligible.
Not having a plan document update process: Practices that set up a plan document once and never revisit it are routinely non-compliant. The FSA limit changed for 2026. Carryover limits changed. Plan documents must be updated or they become outdated representations of the plan.
Ignoring the uniform coverage rule: Health FSA elections are available in full on day one of the plan year, regardless of how much the employee has contributed. Practices that don't understand this risk are sometimes surprised when a departing employee has used more FSA funds than they contributed. Build this into your risk management as part of Section 125 plan design.
Not documenting qualifying life events: When an employee requests a mid-year election change, document the qualifying event (birth certificate, marriage certificate, etc.) and the date it occurred. Undocumented changes are audit risks.
A licensed advisor will review your options and respond within one business day.