Beyond Compliance: How Section 125 Plans Improve Retention and Culture
Running a business today means juggling compliance, taxes, and employee satisfaction — all while keeping costs under control. One of the simplest yet most overlooked tools to achieve this balance is the Section 125 cafeteria plan.
Known formally as an employee benefits cafeteria plan under the IRS tax code section 125, these programs let employees pay for certain benefits with pre-tax dollars. The result? Lower payroll taxes for employers and increased savings for employees.
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