Cafeteria Plans - Section 125
Designed under Section 125 of the Tax Code, Cafeteria Plans are employee benefit plans that offer tax incentives to both employers and employees, saving them thousands in premiums and other healthcare costs. The best part about the Section 125 plan is that most of your employees are already paying for these expenses out of their own pockets with after-tax dollars.
Cafeteria plans offer them a remarkable way to save money they're already spending. Also, looking at in another way, participating in a cafeteria plan reduces an employee's taxable salary and increases the percentage of their take-home pay, thus increasing their spendable income. They receive a greater deduction on dependent care expenses than what's offered by a traditional tax credit at the end of year.
Please take a moment to review some specific details of the different types of Cafeteria and other CDHPs that Sheridan Benefits offer to employers.