How Employers Can Save FICA Tax And Make Their Employees Happy At The Same Time
Offering Supplemental Benefits to employees will make employees happy and help with retention.
Supplemental Benefits consist of the following plans: Hospital/Outpatient Facility, Accident, Cancer, Critical Illness, Disability, Life Insurance.
Premiums are typically 100% paid for by employees. Employers sometimes pay a portion or all of the premium.
The portion of the premium that is paid by the employee can be on a pre-tax basis using a Section 125 Plan … the employee and employer will save on FICA tax AND the employee will also save on income tax.
