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Section 125/Cafeteria Plans:


Internal Revenue Code Section 125 allows for employees to defer pre-tax dollars (compensation) towards the payment of certain expenses. Employees are offered a "menu" of options to choose from. The most popular options include dependent care expenses (daycare), medical and dental premiums, group life insurance premiums, and certain un-reimbursed medical expenses. The amounts deferred are exempt from FICA, Federal Income Tax and in some cases State Income Tax.

 

 

 

 

 

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