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Wednesday, June 11, 2025

Section 125, also known as a Cafeteria Plan


There’s a little-known provision in the IRS code that lets you legally reduce payroll tax liability — without cutting wages, laying off employees, or slashing benefits.

It’s called Section 125, also known as a Cafeteria Plan — and it’s one of the most powerful tools for putting real money back in your business.

๐Ÿ’ก How It Works:

Employees choose to allocate a portion of their pay before taxes toward eligible benefits

This reduces their taxable income — and yours

Employers save on FICA (Social Security + Medicare) taxes

Fully IRS-compliant and simple to implement

Employees take home more, you pay less


๐Ÿ“Š Real-World Savings by Company Size:


Company Size Estimated Annual FICA Savings


10 Employees $5,200 – $8,000+

50 Employees $26,000 – $40,000+

100 Employees $50,000 – $80,000+


Savings vary based on employee participation and benefit structure.


๐Ÿšจ Why This Is Urgent:


Most payroll providers don’t set this up by default

Many CPAs don’t flag it during tax planning

Every payroll cycle you delay is money lost forever


See The Magic For YOUR Business!!


You’ve worked hard for your profits — don’t give more than you have to. Take 1 minute today to discover what a Section 125 Plan could do for your business.


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