Why Offering Pre-Tax Benefits Like Section 125 Is a No Brainer for Business Owners
Running a business involves navigating a lot of financial challenges, but here’s a straightforward solution: saving on payroll taxes while keeping your employees satisfied. The key? A Section 125 Plan—an IRS-approved program that allows employees to save on healthcare expenses, ultimately benefiting their bottom line. If you’re an employer seeking to enhance employee benefits without […]
Why More Companies are Switching to Section 125 Plans in 2025
Businesses are always on the lookout for ways to enhance their benefits while managing expenses effectively. This is where the Section 125 Plan comes into play—a straightforward and budget-friendly option that serves the interests of both employers and employees. So, what is a Section 125 Plan, and why are so many companies opting for it […]
Why CFOs Are Choosing Section 125 Plans
In 2025, businesses are reevaluating their employee benefits, and one financial approach is gaining significant popularity—Section 125 Plans. CFOs and HR leaders are increasingly adopting these cafeteria plans as a smart way to improve benefits while minimizing payroll tax expenses. As the workforce seeks more attractive compensation packages and companies aim to reduce costs, Section […]
What Is a Section 125 Cafeteria Plan? A CEO’s Guide to Pre-Tax Benefits
A Section 125 or “Cafeteria” plan is part of the IRS code that enables employees to take taxable benefits, such as a cash salary, and convert them into nontaxable benefits. Employees enrolled in Section 125 plans can reserve part of their pre-tax cash earnings to cover the costs of qualified benefits such as medical and […]
Setting Up a Section 125 Cafeteria Plan: A Step-by-Step Guide for HR Leaders
In today’s hiring market, companies have to spend more and more to create benefits packages that both attract and retain talent. A great solution to curb those expenses and, at the same time, receive significant savings on payroll taxes and health benefits, is the Section 125 plan, also called the “Cafeteria” plan, because employees can […]
Section 125 Is the Easiest Way to Offer Pre-Tax Benefits—Without Spending a Dime
More and more employers are using different types of employee benefits plans allowed by the Internal Revenue Service (IRS). Benefits are also important for businesses as they significantly enhance job satisfaction and overall employee experience, making it essential for HR managers to stay informed about the various options available. One of these options, the Section […]
Section 125 Compliance: What Every HR Manager Needs to Know
SSection 125, or “Cafeteria” plans, are a vehicle for employers to offer certain benefits to employees on a tax-free basis. These plans, governed by the Internal Revenue Code (IRC), require careful attention to section 125 compliance to ensure all legal and tax requirements are met. Employees enrolled in Section 125 plans can reserve part of […]
Reduce Payroll Taxes without Reducing Employee Pay—Here’s How
For companies aiming to reduce expenses without cutting employee salaries, a Section 125 Plan is a valuable yet frequently overlooked option. It helps lower payroll taxes for employers while boosting employees’ take-home pay—all without incurring additional costs. Let’s explore this further. The Section 125 Plan A Section 125 payroll plan, also known as a cafeteria […]
How a Section 125 Plan Saves Your Company Thousands—Without Extra Costs
Many companies (and possibly yours as well), are feeling the pressure to economize on their expenses with fewer employees, fewer resources, and smaller budgets. Labor costs can account for as much as 70% of total business costs according to the U.S. Bureau of Labor Statistics. Yet, according to a recent survey, HR professionals only spend […]
How a Section 125 Plan Cuts Payroll Taxes by $600+ Per Employee
One of the best ways to acquire and retain talent is to offer a great benefits package for employees. According to an employee benefits study, more than 80% of job seekers give some or heavy consideration to certain benefits. For employees, benefits are essential to quality healthcare, comfortable retirement savings, and much more. On the […]