new jersey
URGENT!! Compliance changes have been made to Section 125 plans for 2014! Affects plans in New Jersey, Arizona, New Mexico. Click HERE to check compliance.

Benefits

*NOTE:  This page is about the benefits of Section 125 Plans.  If you are looking for resources on Health Benefits, click here.

Employee Benefits (approximately $100-$300/mo. increase in take home pay AND health insurance)

  • Employees get ALL paid into pocket tax-free (average take-home pay increase is $108/mo.)
  • Employees select coverage that suits their needs
  • Can be set up to allow a cash payment in lieu of benefits (good for spouses)
  • Decreases taxable income (depending on plan, can lower tax bracket)
  • To see how much employees can save, click here

Company Benefits (approximately 7.65% minimum decrease in tax liability)

  • Offer your employees benefits at little to NO COST TO YOU
  • Keep good employees happy and help recruit good employees to offer benefits
  • Lower FICA, FUTA, and Medicare taxes
  • Lower state and local taxes*
  • Easy to set up and maintain
  • To see how much your company can save, click here

We’ve heard reports of companies giving employees over $20,000/mo. in take home pay simply by starting these plans.  That’s why we created this website — to help get the word out about these plans so that more and more businesses can offer their employees health insurance (if you like the information here, perhaps you would consider making a donation).

So, those are the benefits of Section 125 Plans — more money for your company and your employees AND health insurance to boot.  You simply need to set up your compliance documents for each of your employees using one of the resources listed for free on our compliance documents page, and you’re ready to go!

NOTE: AS OF JANUARY 1, 2011, SECTION 125 PLANS ARE FEDERALLY REQUIRED FOR ANY COMPANY OFFERING TAX-FREE HEALTH BENEFITS TO EMPLOYEES (Check your compliance here)

© 2011 Section 125 Plans: The Official Resource