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Employers without a Section 125 Plan Miss Out On HUGE TAX Benefits

If you don't have a Section 125 Plan in place for your organization yet, you and your employees are failing to reap the benefits of the huge tax savings that it could bring.

With a Section 125 Plan, health plans are on a "menu", hence it is also called a cafeteria plan. The range of benefits that a cafeteria plan offers include health, group dental and vision, and disability insurance and employees can select which they want, and the premiums will be paid for via payroll deduction. But you may not know the cafeteria plan's biggest benefit ? its tax-advantaged status.

Those payroll deductions are made pre-tax, which results in a reduced taxable income for the employee. Consequently, this translates to lesser FICA and Medicare taxes for the workers. The lower taxable income also means lower payroll taxes for you, the employer. You also enjoy lower FUTA taxes, and your state payroll taxes could also be lower. Depending on the employees personal tax bracket many participants see tax savings of up to 49-50% on premiums run through the Section 125 plan. Employers on average save 8.45% in FICA and FUTA savings and could be much higher depending on your state and county tax savings and/or workers compensation premiums.

Don't Let Compliance Requirements Scare You

Even if you know the potential benefits of a Section 125 POP plan, you might have chosen not to establish one because of fear of the IRS. Yes, it's true that IRS rules for cafeteria plans are complex, but following them doesn't have to be difficult if you use a professional service.

A reliable cafeteria plan compliance advisor can generate plan documents customized for your business that you can use immediately. They'll retain an electronic copy of these documents, too, so these will always be available if you need them. Some services also offer guides that outline the necessary steps that need to be followed once the plan document is complete. Part of the kit may include the software for annually-required nondiscrimination testing that makes it easy to keep your plan in compliance with these important rules. Best of all, you don't have to burden your employees with the work of staying up-to-date with IRS rules. If there are any changes to the regulations, advisors will automatically update your document and send you the amended copy, ready for your signature.

So what is there to worry about Section 125 compliance? You're covered if you seek assistance from the right people.

It's time to give your employees something they can really use, and give your company cost savings in the process! What's even better is, this expertise and support for your IRS Section 125 is available to you for just $99 a year! Visit us at http://taxfreepremiums.com to discover just how much tax savings you can realize.

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