People ask are employee benefits pre tax like it’s a yes-or-no question. It isn’t. That’s the first thing most employers don’t explain very well, and sometimes don’t explain at all. Some benefits are pre tax. Some aren’t. Some start out pre tax and lose that status because someone cut corners or didn’t follow the rules. When employees get this wrong,...

Let’s not overcomplicate it. The section 125 IRS code is basically a rule that lets you pay for certain benefits with pre-tax money, plain and simple. Instead of your entire paycheck getting taxed first, a portion goes toward things like health insurance before taxes are applied, which lowers your taxable income. It sounds small, but over time it adds up more than people expect. The issue...