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Cafeteria 125 Plan

Section 125 of the Internal Revenue Code allows you to pay your benefit premiums before Federal taxes and Social Security are deducted from your pay, which means you take home more money every week.

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Below is an Example of the Benefits of Participating in the Cafeteria 125 Plan

Single Employee Not Participating

Weekly Pay: $250.00
Federal Tax: $29.31
Social Security: $19.13
Benefit Deductions: $29.07
Net Pay Before Benefit Deductions: $201.56
Net Pay After Deductions: $172.49

Single Employee Participating

Weekly Pay: $250.00
Benefit Deductions: $29.07
Taxable Income: $220.93
Federal Tax: $22.70
Social Security: $16.90
Net Pay After Deductions: $181.33

By participating in the Cafeteria 125 Plan your TAKE HOME PAY after deductions can be INCREASED by $8.84 per week or $459.68 per year.

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