What Is a Section 125 Cafeteria Plan and How Does It Work?

Tue, 15 Apr 2025 11:03:23 +0000

In today’s competitive job market, offering employees a strong, flexible benefits package isn’t just an added bonus — it’s an essential part of building a happy, loyal, and productive workforce. Employers are constantly looking for ways to support their teams while keeping business costs under control, and one increasingly popular option is the IRS Section 125 Cafeteria Plan. Although the name might suggest something related to meal services, in reality, a cafeteria plan has little to do with food and everything to do with how employee benefits are structured and taxed.