Cafeteria Plans for Dummies: Understanding Pre-Tax Employee Benefits
What is a Cafeteria Plan? A Cafeteria Plan, also known as a Section 125 plan, is a type of employee benefits program that allows workers to choose from a variety of pre-tax benefit options. Named after the idea of a “cafeteria-style” selection, these plans help employees reduce taxable income while enabling businesses to cut payroll […]
What’s Covered Under a Section 125 Plan? A Guide to Eligible Benefits
Understanding Section 125 Plans A Section 125 plan, also known as a cafeteria plan, allows employees to use pre-tax dollars to pay for qualified benefits. This reduces taxable income, benefiting both employers and employees. The plan is fully compliant with IRS, ACA, and HIPAA regulations, ensuring businesses can offer tax-advantaged benefits without legal concerns. Eligible […]
How a Section 125 Cafeteria Plan Helps Businesses Save on Taxes and Benefits
What is a Section 125 Cafeteria Plan? A Section 125 cafeteria plan is a tax-advantaged employee benefits plan that allows employees to pay for eligible expenses using pre-tax dollars. This reduces their taxable income, ultimately lowering payroll taxes for employers and increasing employees’ take-home pay. These plans are widely used by businesses looking to optimize […]
How Section 125 Plans Reduce Employer Costs and Improve Employee Benefits
Understanding Section 125 Plans A Section 125 plan, also known as a cafeteria plan, allows employees to pay for eligible benefits using pre-tax dollars. This reduces taxable income, leading to savings for both employers and employees. Section 125 plans have been widely adopted by businesses of all sizes and are fully compliant with IRS, ACA, […]
