Summary of SECTION 125, CAFETERIA BENEFIT PLAN Columbia County Board of Education

The Section 125 Cafeteria Plan provides for all benefit payroll deductions (except short term disability) to be exempt from federal, state and FICA taxes, thereby providing participating employees with additional take home pay.  Anyone participating will have their payroll deductions locked in until the next open enrollment period.

 

STRETCH YOUR DOLLARS WITH PRE-TAX PREMIUMS

WITHOUT CAFETERIA PLAN - AFTER TAX PREMIUMS

 $1,000              =          $1,000              -         $204               -           $68       =          $728

Monthly Pay                  Taxable Pay                  Tax                   Ins. Prem.         Take Home Pay

WITH CAFETERIA PLAN - BEFORE TAX PREMIUMS

 $1,000              -           $68                  =          $932             -           $184     =          $748

Monthly Pay                  Ins. Prem.                     Taxable Pay                  Taxes   Take Home Pay

Tax savings of $20/month or $360/year just by enrolling and submitting Section 125 Enrollment form.