Section 125 cafeteria plan
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Can You Write Off Section 125 Cafeteria Plan?
Short answer: A cafeteria plan lets employees pay health premiums and FSA contributions pre-tax, saving both sides payroll tax.
Sole proprietors, partners, and 2% S corp owners can't participate.
Records to keep: Keep the receipt, proof of payment, and a note or log showing business use; for mixed-use items, track the business percentage.
BW-B23-01666
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Section 125 cafeteria plan
Varies
General Business
Equipment & Gear
Business Equipment & Products
A cafeteria plan lets employees pay health premiums and FSA contributions pre-tax, saving both sides payroll tax.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
A cafeteria plan lets employees pay health premiums and FSA contributions pre-tax, saving both sides payroll tax. Sole proprietors, partners, and 2% S corp owners can't participate.
Category
- Business Equipment & Products
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