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, […]