Companies using a Section 125 Plan save on taxes

(Section 125 Plans: Employee Benefit That Saves Everyone Money)

If you’re an employer, how would you like to:

✅ Lower payroll taxes while keeping employees happy?
✅ Offer tax-free benefits without extra costs?
✅ Retain top talent without increasing salaries?

And if you’re an employee, wouldn’t you love to:

✅ Pay less in taxes & keep more of your paycheck?
✅ Get cheaper healthcare coverage without losing benefits?
✅ Cover medical expenses using pre-tax dollars?

A Section 125 Plan lets you do all of this and more. The best part? It’s 100% IRS-approved.

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

🔗 See how Section 125 Plans work

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

🔗 Why small businesses need Section 125 Plans