With group benefits regarding 125 plans, is it advisable to keep di separate and not pay with pre-tax dollars due to income taxation or is it common to 125 it and explain the taxation to the employer/employees?
Thank you,
Thank you,
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Most of my cases allow employees to make the choice. The employer likes seeing the payroll tax savings associated with the pre tax election.
Expectations have to be managed correctly. The employer needs to understand their FICA obligation on claims, and employees can be given notices at time of application.
Most forget, but if you use an automated enrollment system you can keep an record trail to protect yourself.