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Section 125 Cafeteria Plan

The Section 125 Cafeteria Plan calculator will help you to figure out how participating in your employer's Section 125 Cafeteria Plan can help you pay less in taxes and increase your net take home pay. This calculator can also help you to see how making changes to your existing deductions can affect your tax obligations and your take home pay. This calculator has been updated to use the new withholding schedules for this year.

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Section 125 Cafeteria Plan Overview

One benefit that many employers across the country are offering to their employees is the Section 125 Cafeteria plan. This plan is more commonly known as a Flexible Spending Account (FSA). This type of account allows employees to make pre-tax deductions from their paychecks to cover certain expenses such as out-of-pocket medical expenses, daycare, and insurance premiums. By participating in an FSA plan you can actually pay less in taxes and increase your net paycheck at the same time.