To The Point Podcast

Section 125 plans provide a simple and effective way to add employee benefits, especially for businesses with a number of employees who regularly have medical and childcare expenses. Employees can deduct their insurance premiums pretax and set aside pretax funds to use toward qualified medical and dependent care expenses. Business owners can experience decreased company payroll and tax liabilities for social security, Medicare, and unemployment. But, before you start pre-taxing, be sure to have the right documents in place!