Section 125 Cafeteria Plans

Can Employers Save Taxes with a Section 125 Cafeteria Plan?

Posted by on Jun 29, 2012 in Section 125 Cafeteria Plans | 0 comments

  A cafeteria plan is a list of voluntary fringe benefits an employee can choose from. Generally, these benefits will have premiums, or costs, associated with them. The employee then elects to have monthly premium costs deducted from his or her paycheck. The employer then forwards these premiums each month to the benefits company. The plans are named for the section of the Internal Revenue Code that allows employers to withhold these premiums from employees pay. The worker benefits because they gain access to valuable health and welfare benefits they would have a hard time getting into...

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