The Power of Cafeteria 125 Pre-Tax Plans for Employers and Employees

Cafeteria 125 pre-tax plans are powerful tools that help employers and employees save money on healthcare expenses. These plans allow employees to pay for eligible benefits with pre-tax dollars, lowering taxable income and reducing overall tax liabilities for the organization.

What is a Cafeteria 125 Plan?

A Cafeteria 125 plan lets employees choose among different benefits—like health insurance, flexible spending accounts, and wellness programs—funded pre-tax. The Capstone Plus program uses this structure to maximize savings for employers and employees alike.

Employer Advantages

• Reduced payroll taxes: Lower taxable payroll means less employer tax liability.

• Attract and retain talent: Offering pre-tax benefits increases the value of compensation packages.

• Compliance and audit protection: Programs like Capstone Plus ensure IRS and Department of Labor compliance with full audit protection.

Employee Benefits

Employees gain access to valuable health and wellness services without additional out-of-pocket costs. Using pre-tax dollars also means more take-home pay and financial relief.

Conclusion

Cafeteria 125 pre-tax plans are win-win solutions for cost savings and employee satisfaction. Partner with Earnest Banks to implement a compliant and effective program tailored to your organization.