How Liberty National’s Cafeteria Plan Works
Section 125 Cafeteria Plans help you find and retain better quality employees. By offering your employees voluntary benefits, you help them gain access to supplemental insurance benefits they need or want individually or for their families. Section 125 Cafeteria Plans help your employees:
- Save money by purchasing certain supplemental insurance benefits pretax, conveniently through payroll deduction
- Perform better because they have access to voluntary benefits
A happy staff delivers a stronger performance and better morale for business owners. Employers also save money when they provide a Section 125 Cafeteria Plan.
Section 125 is an IRS code that provides tax savings on Cafeteria Plan benefits. A Cafeteria Plan is an employer-provided benefits program in which an employee uses pretax dollars to pay for qualified expenses, such as life and supplemental health insurance premiums.
With Liberty National’s Worksite Advantage Section 125 Cafeteria Plan, the employer facilitates insurance payment by deducting the premium from the employee’s paycheck before taxes are withheld on eligible pretax products.
Pretax deduction provides the benefit of reducing an employee’s taxable gross income. Lower taxable income for employees means employers spend less on contributions toward federal unemployment, Social Security, workers’ compensation, and applicable states taxes.
Is There a Fee to Enroll My Business in LNL’s Worksite Advantage?
No. Liberty National’s Worksite Advantage is self-administered, so there are no setup or administrative fees.