Deemed Section 125 Compensation

Is there anyone out there who has Plan Sponsors that have "deemed Section 125 compensation"?  And if so, how do you know about it and where is it reported in the payroll records, assuming it is?

The most important thing to no about deemed 125 compensation is that it is not any kind of "real" Compensation.  It is not taxable. It is not cash. That is where the term "DEEMED" comes in. Really no one would ever want to include it.  So many people think it has to do with pre-tax health insurance payments, or with cash payments in lieu of benefits.  It is neither of those things.

Relius put together this write-up a long long time ago and its the best explanation I have seen from a trusted source (it was 24 years ago) 🙄  I have attached it below.

I see document providers included Deemed 125 all the time based on this misunderstanding.  I think it is dangerous because, as I mentioned, it is not cash, and it is not taxable - meaning it is never captured on payroll. Meaning it will never be taken into account.

Based on the description in this pdf, I have a feeling it is also exceedingly rare.

Comp - Deemed 125 Explanation.pdf

The attachment is "unavailable." I don't suppose you have a link for it instead?