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Workplace

December 6, 2022

Understanding IRS Code Section 125

Payroll taxes are one of those necessary evils that we hate at the time but appreciate later when we reap the benefits they provide – Social Security, Medicare, unemployment insurance, and other social insurance programs. In order to save money on payroll taxes for both the company and its employees, many business owners set up pre-tax deductions for insurance premiums without understanding the documentation that is required by the Internal Revenue Service (IRS) and the restrictions that apply.