What Is Section 125 and Why Should You Consider It for Your Benefits Package?
Let’s be real: offering a competitive benefits package used to mean shelling out more money. But what if you could offer your employees better coverage and save your business money at the same time? Sounds too good to be true? Not with Section 125. Whether you’re a business owner, HR expert, or simply interested in […]
How Section 125 Pre-Tax Plans Work with HSAs, Health Sphere’s Revive & Thrive
You’ve undoubtedly heard of a Section 125 pre tax plan if you’re an employer or employee searching for more efficient ways to maximize your benefits funds. Health Savings Accounts (HSAs) may also be familiar to you. Although both offer significant tax benefits, it can be difficult to comprehend how they complement one another and how […]
What Is a Section 125 Cafeteria Plan?
A Section 125 cafeteria plan might sound complicated, but it’s really just a smarter way for employers to offer benefits and for employees to save on taxes. Instead of taking a cookie-cutter approach, it gives workers a menu of benefit choices. That’s where the name “cafeteria” comes from. Employees pick and choose what they want, […]
Is 125 Health Insurance Really Pre-Tax?
If you’ve heard the term 125 health insurance plans, you may be wondering what it actually means, and more importantly, whether it really offers pre-tax savings. The answer is yes, but the story goes deeper. A 125 health insurance plan, also known as a Section 125 plan or cafeteria plan, is more than just a […]
What Events Count for IRS Section 125 Changes?
Section 125 plans give employers and employees a powerful way to manage health and wellness benefits while maximizing tax savings. But what happens when life changes? Can employees adjust their elections mid-year? The IRS has clear rules for this. Under a Section 125 cafeteria plan, changes to benefit elections are typically only allowed during open […]
Do You Need a Plan Document for Section 125?
If you’re offering a Section 125 benefits program to your employees, having a written Section 125 plan document isn’t just a good idea, it’s a legal requirement. Whether you’re rolling out a premium-only plan or a robust, compliant wellness program like Health Sphere’s Revive or Thrive, documentation is key to staying compliant and protecting your […]
What’s Included in a Section 125 Flexible Benefits Plan?
If you’re an employer looking for a smarter, more cost-effective way to deliver healthcare and wellness benefits, a Section 125 flexible benefits plan may be exactly what you need. But what does it actually include? At its core, a 125 flexible benefits plan, often called a cafeteria plan, lets employees choose from a variety of […]
What Qualifies as a Life Event Under a 125 Plan?
Section 125 plans, also known as cafeteria plans, offer powerful tax savings by allowing employees to pay for certain benefits with pre-tax income. But once employees enroll, when can they make changes to their elections? That’s where qualifying life events come in. Under IRS rules, employees can only adjust their pre-tax benefit elections outside open […]
How Does Section 125 Insurance Save You Money?
Healthcare costs are rising. Tax burdens feel heavier. And both employers and employees are searching for smarter ways to protect their wallets without compromising coverage. That’s where a Section 125 insurance plan comes in. Also known as a 125 insurance plan, this strategy allows employees to pay for qualifying health benefits using pre-tax income. That alone […]
What Are the Real Benefits of a 125 Plan?
If you’re an employer navigating the rising cost of healthcare, you’ve likely heard of Section 125, but what do these plans really do? Beyond IRS compliance and pre-tax deductions, the modern Section 125 wellness plan can be a powerful tool to cut costs, boost retention, and offer life-changing benefits to your team. At Health Sphere, […]