There are TAX BENEFITS for offering benefits such as Aflac to your employees.
Section 125 Cafeteria Plans are one of the most underused employee benefits for small businesses today. These plans simply allow employees to withhold a portion of their salary on a pre-tax basis to cover the cost of qualifying insurance premiums, medical expenses and dependent care expenses. Because Section 125 Cafeteria Plan benefits are free from federal and state income tax, an employee’s taxable income is reduced which increases take-home pay. And because the Section 125 Cafeteria Plan reduces employee gross income for purposes of income tax, the employer also enjoys a reduction in their payroll tax liability by eliminating matching FICA taxes of 7.65%, and possibly workers’ compensation (depending on your state). It's a win win for everyone! For more information: http://www.coredocuments.com/irs_section_125.php
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