Free IRS Section 125 Plan Document - Section 125 Premium Only Plan

An IRS Section 125 Plan Document for a Premium Only Section 125 Cafeteria Plan should always be implemented at no cost.  Don't be fooled by flex plan service companies that will charge you anywhere from $100 to $500 for an IRS Section 125 Plan Document.  An IRS Section 125 premium only cafeteria plan and the IRS Section 125 Plan Document should never cost you or your employees a dime.  

IRS Section 125 Plan Tax Savings

Offset the rising cost of health care by reducing payroll taxes with an IRS Section 125 Cafeteria Plan, for FREE!!

By participating  in an IRS Section 125 plan, you will reduce your share of FICA and FUTA taxes every time an employee contributes to an IRS Section 125 qualified benefit using pre tax dollars.

IRS Section 125 Plan means
Reducing your share of FICA and FUTA taxes by reducing your employees' taxable incomes.

Employer IRS Section 125 Plan Savings Example
Per $1,000,000 in payroll

	Without									With
	IRS Section 125 Plan									IRS Section 125 Plan
$	1,000,000				Annual Payroll				$	1,000,000				Annual Payroll
-	0				Employee Pre-tax Contribution				-	70,000				Employee Pre-tax Contribution
	__________									__________
$	1,000,000				Taxable Payroll				$	930,000				Taxable Payroll
x	7.65%				FICA				x	7.65%				FICA
	__________									__________
$	76,500				Employer Tax				$	71,145				Employer Tax
$5,355   Employer Section 125 Tax Savings

IRS Section 125 Plan means
Increased take home pay because of IRS Section 125 Plan tax savings

Employee IRS Section 125 Plan Savings Example
Per $2,000 in gross income

	Without									With
	IRS Section 125 Plan									IRS Section 125 Plan
$	2,000				Gross Income				$	2,000				Gross Income
-	500				Taxes				-	200				Insurance Premiums
	__________									__________
$	1,500				Take Home Pay				$	1,800				Taxable Income
-	200				Insurance Premiums				-	450				Taxes
	__________									__________
$	1,300				Employee Take Home Pay				$	1,350				Employee Take Home Pay
$50   Employee Section 125 Tax Savings
*IRS Section 125 Plan example assumes a 25 percent tax rate.

What is an IRS Section 125 cafeteria plan?

IRS Section 125 of the Internal Revenue Code requires an employer to maintain a written IRS section 125 Plan Document when participants of an IRSSsection 125 Cafeteria Plan pay for qualified benefits before tax.

An IRS Section 125 Plan allows an employer to offer its employees a choice between taxable and nontaxable benefits. IRS Section 125 allows employees to pay for medical insurance premiums and other qualified benefits with pretax dollars. We can help employers establish an IRS Section 125 Cafeteria Plan along with the IRS required IRS Section 125 Plan Document for FREE!!

What benefits qualify under an IRS Section 125 Plan?

• Accident and health insurance premium are IRS Section 125 qualified benefits
• Adoption assistance qualifies under IRS Section 125 as an IRS Section 125 qualified benefit
• Dependent care assistance qualifies under IRS Section 125 as an IRS Section 125 qualified benefit
• Cancer and Hospitalization insurance qualify as IRS Section 125 qualified benefits
• Disability Insurance qualifies under IRS Section 125 as an IRS Section 125 qualified benefit
• Health savings account also qualifies as an IRS Section 125 qualified benefit

Is there a filing requirement for an IRS Section 125 cafeteria plan?

You are not required to file Form 5500 or Schedule F if all you have is an IRS Section 125 cafeteria plan. If you have a welfare benefit plan along with an IRS Section 125 Plan you may be required to file a return.

How does an IRS Section 125 cafeteria plan work?

Contributions to qualified IRS Section 125 Plan benefits are not considered wages for tax purposes when an employee participates in an IRS Section 125 cafeteria plan and agrees to contribute part of his or her pay for the stated IRS Section 125 qualified benefits. Please see regulation under Code Section 125 of the Internal Revenue Code for more details pertaining to IRS Section 125 cafeteria plans.

The professionals in our network are representatives from several Fortune 500 companies. These companies have helped over a half million business owners save money with a FREE IRS Section 125 cafeteria plan.

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