Section 125 of the IRS Code allows employers to implement a plan under which their employees can elect to have contributions for their benefit plans taken out of their paycheck before taxes- reducing the employees’ taxable gross pay and actually giving them a raise in the form of increased take home pay. And because this is a salary reduction plan, it can create a savings to the employer on workers compensation premiums sand payroll taxes. Section 125 plans can also provide additional pre-tax benefits for dependent care and unreimbursable medical, dental and optical expenses not covered by insurance plans. MyHRBenefits.net does not charge a fee to our clients to implement a Section 125 plan.