Enjoying special tax treatment, a section 125 plan can be an effective way for employees to receive qualifying benefits as pre-tax deductions.
Section 125 plans allow employees to choose between qualifying benefits and cash. For this reason, they are sometimes called Cafeteria Plans. Employees receive their chosen benefits as pre-tax deductions.
Some typical qualifying benefits include:
Alloy can help you to design a Section 125 plan that best fits your needs and those of your employees.