Section 125 Plans (a.k.a. Cafeteria Plans) Help
When Employees Pay Part of Premium
When an employee pays a portion of the premium for his or her health, dental, or vision insurance, we can help you set up a Section 125 plan (also known as Cafeteria Plans). This type of plan enables employees to pay their premium before taxes are deducted from their paycheck; employees save money, because they only pay taxes on the salary they receive after making premium payments. A Section 125 plan also saves the employer money, because the employer’s FICA and worker’s compensation payments are based on the salary after the employee-paid portion of the health, dental, and life insurance premium has been deducted.