In the context of EHP
The pre-tax employee contribution that drives the employer's FICA savings runs through a Section 125 election. Without a properly documented Section 125 plan, the FICA savings can't be claimed.
Term
Section 125 (Cafeteria Plan).
The section of the Internal Revenue Code that lets employees pay for qualified benefits with pre-tax dollars, reducing both income tax and payroll (FICA) tax.
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