Call us Today: (818) 774-1003

Section 125

Section 125 of the Internal Revenue Code, enacted by Congress in 1978, allows companies to give their employees the opportunity to pay for benefits on a pretax basis. Pretax benefits lower payroll-related taxes for both the employer and employees.

Section 125 offers several alternatives: three of the most common are Premium Only Plans, Flexible Spending Accounts and Cafeteria Plans.