Voluntary benefits—such as supplemental health, dental, vision, and life insurance—are increasingly popular among small and mid-sized businesses. These benefits are employee-paid, offered through payroll deduction, and often come at no direct cost to the employer. But the real win? The tax advantages.
When structured under a Section 125 Cafeteria Plan, employee premiums for voluntary benefits can be paid pre-tax. This reduces the employee’s taxable income and lowers the employer’s payroll tax liability—typically saving around 7.65% in FICA taxes for every dollar redirected pre-tax. Over time, those savings add up.
In addition to being cost-effective, voluntary benefits help attract and retain talent by enhancing your total benefits package without straining your budget. It’s a smart strategy that supports both your team and your bottom line.
Reach out today to find out how ARI Consultants can implement these benefits at NO NET COST to your employee!