Section 125 Plans

We offer complimentary Section 125 Plans to qualified clients through our in-house CPA. This allows our clients to enjoy the tax savings associated with Section 125 plans, without having to pay the high fees accountants and lawyers generally charge to set them up.

Section 125 Plans allow employees to enjoy certain benefits offered by their employer on a pre-tax basis. Putting a Section 125 Plan in place offers benefits for both employees and employers and is highly recommended for any company that offers qualified benefits to their employees.

Benefits to Employees. Since benefits offered under a Section 125 Plan are not included in payroll tax calculations, employees save 7.65% on the portion of the benefit premium that they contribute. In addition, employee are likely to save an addition 15-40% since those amounts are also excluded from income tax calculations.

Benefits to Employers. Employers also have payroll tax savings as those amounts are excluded from the employer's portion of FICA and Medicare taxes as well.

Who Can Participate? Almost any organization can participate regardless of the legal structure of the business. However, there may be exclusions for owners and members depending on the structure. Please contact us for more specific information about eligibility.