Is a Section 125 Plan Right for Your Small Business? Small business owners face a tough balancing act—offering competitive employee benefits while managing rising operational cost. One of the most overlooked yet highly effective solutions is a Section 125 plan for small business. Commonly known as a cafeteria plan, it allows employees to pay for certain healthcare-related expenses using pre-tax dollars. Why a Section 125 Plan Matters for Small Businesses Implementing a Section 125 plan for small business delivers several meaningful benefits: Tax Savings for Employers: By reducing the taxable income of your employees, your business lowers its payroll tax obligations—an immediate and recurring cost benefit. Increased Take-Home Pay for Employees: Employees enjoy higher net pay without a raise, helping improve morale and retention. Stronger Employee Retention: Offering pre-tax benefits can help attract and retain workers in competitive, high-turnover industries. For more visit: https://lumara-health.com/everything-you-need-to-know-about-section-125-cafeteria-plans/