Section 125 refers to the Internal Revenue Code of 1986, which at Section 125(a), allows an employer to pay a portion of an employee’s healthcare costs. The company will contribute a certain percentage of the employee’s salary to cover their cost of coverage. It can be done in some ways, either with salary reductions or by arranging for a third-party administrator (TPA) to process the payments, such as ADP.
Let’s Recruit, Reward, and Retain
Your Workforce Together!