How a Section 125 Plan Helps Employers and Employees Save on Taxes

Managing employee benefits while controlling costs is a constant challenge for businesses of all sizes. However, employees are looking for benefits that actually increase their pay-per-hour earnings without adding more complexity. Section 125 plans are an effective solution to both objectives. In allowing certain benefits to be financed with tax-free dollars, this program can result in significant tax savings both for employees and employers. Knowing how the plan works and the reasons why is important helps companies make more informed benefits decisions.

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