In today’s competitive job market, offering meaningful employee benefits is crucial. A Section 125 plan, also known as a cafeteria plan, provides a win-win for employers and employees: significant tax savings and enhanced financial flexibility. Here’s how these plans can save your business and your employees money while simplifying benefit administration.
What Is a Section 125 Plan?
A Section 125 plan allows employees to pay for eligible health-related benefits with pre-tax dollars. This reduces their taxable income and helps them save on payroll taxes. Employers benefit, too, by reducing their share of payroll taxes.
At Renaissance Advisory, we specialize in helping businesses unlock the full potential of Section 125 plans, offering pre-tax health benefit solutions that save $600–$800 per employee annually.
Key Benefits of Section 125 Plans
- Employee Savings
Employees can allocate pre-tax income to cover essential health-related expenses, such as:
- Health insurance premiums
- Pre-tax contributions for supplemental benefits
- By using pre-tax dollars, employees see significant savings on their take-home pay.
- Employer Tax Relief
For every employee enrolled in a Section 125 plan, businesses save on payroll taxes—adding up to thousands of dollars annually, especially for companies with larger teams.
- Improved Employee Satisfaction
Offering a Section 125 plan shows employees that you care about their financial well-being. Lower healthcare costs and more take-home pay contribute to higher morale and retention.
- Risk-Free Implementation
At Renaissance Advisory, we ensure that your plan is fully compliant with IRS and Department of Labor regulations, so you avoid risks while maximizing savings.
Why Choose Renaissance Advisory?
At Renaissance Advisory, we make implementing a Section 125 plan easy and effective:
- Substantial Savings: Our clients typically save $600–$800 per employee annually, creating immediate and ongoing financial benefits for your business.
- End-to-End Management: From setup to compliance and beyond, we handle every detail so you can focus on running your business.
- Risk-Free Solutions: Our contingency-based model ensures you see savings before paying a dime.
Start Saving Today
Section 125 plans are more than just a benefit—they’re a strategic advantage. Let Renaissance Advisory help you maximize tax savings and provide valuable benefits to your team.
Contact us today to learn how you can implement a Section 125 plan and start saving.