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The
best of both worlds for the Employer & Employee
A section
125 plan is an employee benefit plan, authorized by Section 125
of the Internal Revenue Code, which allows employees to redirect
a portion of their salaries into the plan on a PRETAX basis. This
can provide significant tax savings for both the employee and employer.
 Through
a simple payroll deduction, your employees can pay for the following
on a PRETAX basis.
- Dependent
Care Expenses such as child care or adult dependent care.
- Unreimbursed
Health Expenses such as deductibles and coinsurance, medical and
dental expenses.
- Group
Insurance Premiums (Premium Plan) includes medical, dental disability
and term life.
Potential
Benefits for Employer & Employee
Employer
Benefits
- Reduction
of payroll related costs
- NO
Social Security Taxes (FICA)
- NO
Medicare Tax
- Lower
Workers' Compensation Premiums (check with your carrier)
Employee
Benefits
- Reduction
of payroll related costs
- NO
Social Security Taxes (FICA)
- NO
State Income Tax
- NO
Federal Income Tax
- NO
Medicare Tax
Material
discussed is meant for general illustration and/or informational purposes
only, and it is not to be construed as tax, legal, or investment advice.
Although the information has been gathered from sources believed to
be reliable, please note that individual situations can vary. Therefore,
the information should be relied upon when coordinated with professional
advice. Information is subject to change without notice. |
