Operating since 2017 in Puerto Rico and the US

A Cafeteria Plan, often referred to as Section 125 Plan under the IRS Code, offers significant benefits for both employees and employers. Let’s break down the key points:

1. Pre-Tax Deductions: The beauty of a Cafeteria Plan lies in its predictability. Employees know that these pre-tax deductions will not affect their take-home pay.
2. Qualified Expenses: Cafeteria Plans cover a range of qualified expenses, including:
3. Insurance Premiums: Employees can use pre-tax dollars to pay for health insurance premiums (medical, dental, vision, etc.).
   • Employer’s Bottom Line: By implementing a Cafeteria Plan, employers can attract and retain talent by providing desirable benefits.

It contributes to a healthier, more productive workforce and positively impacts the employer’s bottom line.

In summary, Cafeteria Plans create a win-win situation: employees enjoy tax advantages and access to essential benefits, while employers enhance their competitive edge and financial stability.