Implementing a Cafeteria Plan
Regardless if your company is located along the banks of the Ohio River, the shores of Lake Erie, any city in Ohio (I’ve chosen the Buckeye State because I’m a Buckeye through and through) or any city in the United States for that matter, a pre-tax 125 Cafeteria Plan will work for your company.
A pre-tax 125 Cafeteria Plan in Ohio or elsewhere will save you FICA taxes, strengthen your benefits program, and save employees 17% to 40% in taxes (depending on their income tax bracket). Plus, you can do so with little or zero out-of-pocket dollars.
IRS code allows for employers to implement a pre-tax Section 125 Cafeteria Plan, which allows for unreimbursed insurance expenses to be paid pre-tax. Examples include insurance premiums, doctors office co-pays, prescription co-pays, eye exams, eye glasses, contact lenses, laser eye surgery, orthodontics, and more…
You may choose to administer in-house or to ease your workload and comply with IRS regulations outsource your cafeteria plan administration.
