What Are 125 Cafeteria Plan Benefits and How Do They Work?
Explore how 125 Cafeteria Plan Benefits can help each employer and employees store cash, improve benefits, and boost pleasure — during tax-advantaged techniques. A Section 125 plan, commonly known as a cafeteria plan, allows personnel to pick from numerous pre-tax gain alternatives to match their needs. Known as section 125 cafeteria plan, those IRS-approved alternatives lessen taxable earnings for employees and reduce payroll tax liabilities for employers. However, cutting-edge solutions like Life Flex move past traditional cafeteria plans through integrating 3 powerful layers: Section 125 tax financial savings, Preventative Care Management Plan (PCMP), and Self Insured health Reimbursement Plan (SIMRP). Together, those components offer a complete and automated machine tailored to small commercial enterprise needs — presenting financial savings, comfort, and expanded worker nicely-being. Here's the way it works in detail. 1. Understanding the Core of 125 Cafeteria Plan Benefits...