Section 125 plans (also known as cafeteria plans) allow companies to deduct health insurance, dental insurance, dependent care, and medical reimbursements from their employee’s gross pay. These plans are beneficial to both employees and employers. Employee’s net pay is increased as a result of the pre-tax status of the deduction. The company receives the pre-tax benefit as well by not having to pay social security, Medicare, and unemployment taxes on the pre-tax deduction amounts.
BizChecks Payroll has teamed up with one of the regions foremost experts in the administration of Section 125 Plans. Our partner will assist you with the selection of the plan which will be most beneficial to your organization and walk you through the set-up process.