Guest ESOPwizard Posted December 4, 1998 Posted December 4, 1998 What would be the tax savings from having a 125 plan, and would it be more cost effective to not have one and give employees slightly higher benefits?
Lisa Hand Posted December 5, 1998 Posted December 5, 1998 With a Cafeteria Plan, the employees save state, federal and FICA on every dollar and the employer saves FICA. As to the second portion of your question, it is hard to answer without more informaiton about your organization and its demographics.
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