Everything You Need to Know About Section 125 Plans

Employers and workers both are looking for strategies to maximize value in the competitive benefits scene of today without raising expenses. Often known as the Section 125 programme, the 125 cafeteria plan is a tax-advantaged method that lets employees set aside some pre-tax money for qualified costs. Offering this adaptable structure allows companies to not only raise employee happiness but also save payroll taxes. We examine the main ideas of the 125 cafeteria plan in this article, discuss its benefits for both sides, and provide optimal practices for flawless application.

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More Benefits, Same Pay: How Section 125 Plans Transform Compensation

Companies trying to improve the welfare, retention, and contentment of their employees—while saving money—should give a Section 125 pre tax plan first thought. Without lowering take-home pay, this strong benefits model gives workers access to top-notional healthcare, mental health support, and financial safety.

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