What is a section 125 plan?

Section 125 of the Internal Revenue code which allows Employers to sponsor a plan for their Employees that creates PRE-TAX savings through the reduction of:

Medical Insurance Premiums
Out-of-Pocket Medical Expenses
Dependent/Child Care Expenses
Personally Paid Health Insurance Premiums

Implementing A FULL SECTION 125 PLAN saves both the Employer and the Employee a lot more money than simply implementing a Premium Only Plan (POP). In a Full Flex Section 125 Cafeteria Plan:

Employees Can...
1. Increase their take home pay
2. Pre-Tax Dependent and/or Child Care Expenses
3. Choose additional voluntary benefits paid for with tax savings
4. Pre-Tax Medical out-of-pocket Expenses
Employers Can...
1. Lower reportable payroll
2. Reduce Workers Compensation Premium
3. Reduce payroll taxes
4. Offer additional voluntary benefits to employee without increasing corporate cost.

Use the calculator to see what you could save.