27 Mar How a Section 125 Plan Saves You Money & Boosts Benefits
Section 125 Plan Saves You Money & Boosts Benefits
Let’s be honest—healthcare is expensive. But what if you could cut costs, boost your take-home pay, and get better benefits all at once? Sounds too good to be true, right?
That’s exactly what a Section 125 Plan does! This IRS-approved plan lets employees pay for health benefits with pre-tax dollars, lowering taxable income and putting more money back into your paycheck. (How a Section 125 Plan Saves You Money & Boosts Benefits)
🔥 Employees win. Employers win. Everyone wins. 🔥
💰 What’s in it for you?
✅ Lower healthcare costs – Use pre-tax dollars to pay for insurance!
✅ Bigger paycheck – Less taxable income means more take-home cash.
✅ Employer perks – Lower payroll taxes while keeping employees happy.
👉 Want to start saving? Contact The Policy Shop to learn more!
🔗 Learn how Section 125 Plans help employees and businesses save BIG
What Is a Section 125 Plan?
A Section 125 Plan—also called a Cafeteria Plan—allows employees to pay for healthcare benefits with pre-tax dollars. This lowers taxable income, reducing the amount employees and employers owe in taxes.
✅ Tax savings for both employees & businesses
✅ Lower healthcare costs through pre-tax deductions
✅ Flexible benefit options to meet diverse employee needs
🔗 Learn more about how Section 125 Plans save employees and businesses money
How Does a Section 125 Plan Work?
When an employer sets up a Section 125 Plan, employees can choose to contribute pre-tax earnings toward eligible benefits such as:
- Health insurance premiums 🏥
- Flexible Spending Accounts (FSAs) 💳
- Dependent care expenses 👶
- Health Savings Accounts (HSAs) 🏦
Since contributions are deducted before taxes, employees keep more of their paycheck while getting the coverage they need.
🔗 Discover how Section 125 Plans optimize healthcare savings
Benefits of a Section 125 Plan
For Employees:
✔ Save on healthcare costs by reducing taxable income
✔ Increase take-home pay without earning more
✔ Gain access to pre-tax benefits like FSAs and HSAs
🔗 How Section 125 Plans help employees cover unexpected medical costs
For Employers:
✔ Lower payroll taxes by reducing taxable employee earnings
✔ Boost employee satisfaction & retention with better benefits
✔ Attract top talent by offering competitive tax-advantaged perks