Let employees pay premiums pre-tax
A Section 125 plan — also called a cafeteria plan or premium-only plan (POP) — lets employees pay their share of premiums with pre-tax dollars. That lowers payroll taxes for both the business and the employee, often for little more than the cost of setting it up.
When employees pay premiums pre-tax, their taxable wages drop — so they take home more — and the business owes less in matching FICA taxes on those wages. A basic premium-only plan is inexpensive to establish and often pays for itself quickly. You can expand it to include flexible spending accounts (FSAs) for medical and dependent-care expenses.
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Setup is modest, and the employer typically saves on payroll taxes for every dollar employees run pre-tax — so it often more than pays for itself. We can add it alongside your group plan, ICHRA, or ancillary benefits.