Sound too Good to be True?
Here's how it Works.
Saves employers 7.65% on every dollar moved pre-tax.
Average of $573.60 in tax savings per employee every year.
Average of $573.60 in tax savings per employee every year.
The Section 125 Cafeteria Plan
Participating in a Cafeteria Plan reduces an employee’s taxable income through a Section 125 pre-tax deduction. In exchange they get additional, tax-advantaged benefits.
This same pre-tax deduction also serves to reduce the employer's payroll tax liability. Namely, the matching FICA taxes of 7.65% that the employer has to pay for every taxable dollar the employee receives.
















