Navigation Links
Celebrating 40 Years of Tax-Saving Section 125 Cafeteria Plans
Date:11/6/2018

Believe it or not, every paycheck brings millions of Americans a helpful little boost from the U. S. Treasury. It usually goes unnoticed and taken for granted. It seems that it has always been there and always will be. Most Americans might be surprised to learn that U. S. Code Section 125 -- which governs the tax-saving provisions of employer Cafeteria Plans – came into the law only 40 years ago, on November 6, 1978.

To celebrate the 40th birthday of the Section 125 Cafeteria Plan, Core Documents, Inc., presents a six-part series on the history of this valuable (but oft-forgotten) tax-saving benefit to American employees and their dependents.

If not for Section 125 of the Code, many workers would not be able to afford the group health insurance offered by employers. Those who could afford it would pay about a third more for coverage without the Code's tax-favored treatment of salary deductions for group health benefits under Section 125 plans.

Employers save, too, because pre-tax employee payments into Section 125 plans reduce overall payroll expense. That usually means no FICA, FUTA, or other payroll tax paid on those dollars. The employer tax savings on those pre-tax employee premium payments and flex plan contributions is usually 8% to 10% -- more than enough to cover any administrative costs to manage the plan.

Core Documents thinks this much in tax savings is worth celebrating. We present this series so that employee and employer alike can learn more about Section 125 Cafeteria Plans and then celebrate with us (in your own small way).

The Section 125 Plan 40th Birthday series begins with a look at the history of the medical expense tax deduction, followed by how (and why) the Treasury proposed adding Section 125 to the Code.

Next is how employers created Flexible Spending Accounts (FSAs) behind the Treasury’s back, and how Congress helped mediate a compromise between the parties.

Then, learn how the Affordable Care Act (ACA) had a big impact on the ways employers could use Section 125 Cafeteria Plans to help employees with health care costs. Not surprisingly, new rules applied and choices declined – especially for small employers – but the essential benefits offered via Section 125 Plans survived.

The closing segment looks at the status of Cafeteria Plans today and possible changes in the near future.

The series Celebrating 40 Years of Section 125 Cafeteria Plans begins @ http://www.coredocuments.com/40years/. Links to the next article as well as those for all other items in the series are at the bottom of each page.

Since 1997, Core Documents, Inc., has been the Trusted Source in affordable plan documents for Section 125 Plans and Health Reimbursement Arrangements (HRA). Our convenient plan document packages provide employers with everything they need to establish an IRS- and DOL-compliant tax-saving benefit. Core Documents offers free plan design, consultation, and support to clients before and after putting their plans in place. Visit our website at http://www.coredocuments.com today to learn more.

Read the full story at https://www.prweb.com/releases/celebrating_40_years_of_tax_saving_section_125_cafeteria_plans/prweb15892293.htm.


'/>"/>
Source: PRWeb
Copyright©2018 Vocus, Inc.
All rights reserved


Related medicine news :

1. Heritage Woods of Rockford Affordable Assisted Living Community is Celebrating Its 10th Anniversary
2. Author Lena Mae‘s Newly Released “From A to Z for Jesus” Is a Gentle Children's Story Celebrating God's Love in a Teachable Moment Between Two Young Sisters
3. Courtney Phoenix's Newly Released "Reigning" Is a Devotional Celebrating Spiritual Seasons and Emphasizing That Each Has a Purpose for Individual Growth and God's Glory
4. Author John Miller‘s Newly Released “The Communion of Saints: A Pastor’s Potpourri of Parishioners” is a Series of Short Stories Celebrating the Saints Met Every Day.
5. Isley's Home Services, Inc.: Celebrating 60 Years Serving Gilbert
6. R. Bruce Dalglish Recognizes the Importance of Celebrating Older Americans Month
7. Celebrating 22 Years of Drs. Nicolas & Asp
8. Dr. David Caggiano is Celebrating 6 Years as an “NJ Top Dentist”
9. Dr. Jill Hazen, of Hazen Plastic Surgery, is Celebrating Four Years as an “NJ Top Doc”
10. Celebrating 10 Years of the Child Life Zone at the Kravis Children’s Hospital at Mount Sinai
11. NJ Top Dentists Presents, Dr. Charanjit K. Sandhu! She is Celebrating 25 Years in Practice
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:3/30/2021)... , ... March 29, 2021 , ... ... the 21st Century , A Virtual Workshop Presented by WCG FDAnews and Cerulean ... 4:30 pm EDT, https://wcg.swoogo.com/modern-sop-and-quality-systems , Are one’s SOPs written for the ...
(Date:3/30/2021)... ... March 29, 2021 , ... According to data released ... reproductive age (13-44) in need of publicly funded contraception live in counties impacted by ... Colorado’s 64 counties have lost some of their Title X resources. , The ...
(Date:3/30/2021)... ... March 29, 2021 , ... Health Literacy Innovations (HLI), a ... confusion due to low health literacy today announces a new partnership with the ... work with ACAP’s member Safety Net Health Plans, those that provide comprehensive health ...
(Date:3/30/2021)... ... ... Dr. Colin Campbell is proud to announce the 1 year anniversary in their new state ... internal medicine and is a primary care specialist who has been practicing for 23 years. ... keep South Jersey healthy one patient at a time. , “Over the past year, Dr. ...
(Date:3/30/2021)... ... March 30, 2021 , ... The COVID-19 ... and survivors; their families; and their caregivers. Crossroads4Hope is addressing the needs of ... emotional support system, MyGo2Support, which meets needs of people impacted by cancer, no ...
Breaking Medicine News(10 mins):
(Date:3/30/2021)... ... March 29, 2021 , ... The University of Texas Health Science Center ... San Antonio Multispecialty and Research Hospital, a destination center for research and treatment of ... In a nod to the COVID-19 pandemic, the ceremony was held virtually. , William ...
(Date:3/30/2021)... ... March 29, 2021 , ... Iora Health ... primary care, has partnered with Devoted Health , one of the fastest-growing ... across Maricopa County and provides seniors with the highest-quality care and experience possible, ...
(Date:3/30/2021)... CITY (PRWEB) , ... March 29, 2021 , ... ... has joined the Vaccine Credential Initiative (VCI), a group bringing together leading health ... record of vaccination status, based on open, interoperable standards. By joining the VCI ...
Breaking Medicine Technology: