Payroll Tax Optimization

Payroll is a recurring expense that must be paid on schedule, regardless of fluctuations in revenue. Businesses with high payroll costs need strong cash flow management.

A properly designed Section 125 Cafeteria Plan allows eligible employee benefit premiums to be paid with pre-tax dollars. Because those amounts are generally excluded from taxable wages for FICA purposes, employers may reduce their FICA payroll tax liability while employees may also reduce their taxable income and increase their take-home pay, depending on their individual circumstances.