Payroll, Pre-tax Benefit Solutions


Set up pre-tax benefits and simple payroll
services from Alerus

Everyone benefits when a practice establishes a pre-tax method for employees to pay for insurance premiums or save to pay for qualified medical, vision, dependent care and similar expenses. To set up such pre-tax accounts, an employer must establish a Section 125 cafeteria plan using a third-party administrator. The MDA endorses Alerus Financial to help members establish and administer these plans, including premium-only plans. Various plan documents are required by law, which Alerus can provide to an employer as needed. The company will also administer the plans on your behalf.

To make it simple, Alerus also offers payroll services. By trusting your payroll processing to Alerus, there can be only one financial institution involved in processing withholdings and directing them to accounts such as health savings accounts, flexible spending accounts or health reimbursement accounts.

Pre-tax accounts benefit employees by allowing them to pay for necessary expenditures before taxes are withheld from their earnings. This helps employees better afford such expenses, as the impact on their take-home pay is less than paying with after-tax dollars. And, the resulting lower gross pay for employees reduces the tax withholdings for the employer, saving them 7.65% in payroll taxes for every dollar allocated to an eligible pre-tax account.

Clean. Simple. Reliable. That’s what you want in a payroll processor and a Section 125 Plan administrator.

For help with payroll or Section 125 plans, contact Paula Ellermann, at or call her at 303-481-1577. Be sure to identify yourself as an MDA member.



The MDA receives royalties when members use the product or services described above.