Section 125 Compliance

Pre-Tax Benefits With Confidence

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Keep Your Cafeteria Plan and Pre-Tax Benefits Simple and Compliant

Section 125 plans (cafeteria plans) help Greenville and Upstate employers offer pre-tax benefits-but only if you follow the rules and document elections properly. Strategic Benefits, Inc. provides straightforward Section 125 compliance support: clear documentation, easy-to-use election forms, and practical examples of what changes are allowed and when. We help small business owners avoid compliance headaches, reduce payroll errors, and make sure every deduction is backed by the right paperwork.

  • Worried About Pre-Tax Deduction Mistakes?
    We align your plan documents, employee elections, and payroll setup so deductions are consistent and audit-ready.

  • Not Sure What Changes Are Allowed Mid-Year?
     We explain qualifying events (marriage, birth, loss of coverage, etc.) in plain English, so you know when elections can be changed.

  • Need to Track Eligibility and Documentation?
     We provide checklists and templates for tracking eligibility, documenting elections, and processing updates.

Problems We Solve Every Day

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Section 125 Compliance Basics for Employers

  • Cafeteria Plan / Pre-Tax Benefits:
    Lets employees pay for certain benefits (health, dental, vision, FSA, HSA) pre-tax-only if you have a written Section 125 plan.

  • Salary Reduction Elections:
    Employees choose how much to contribute; you must document every election and keep signed forms.

  • Qualifying Events / Mid-Year Change Rules:
    Employees can only change elections mid-year for IRS-approved reasons (marriage, divorce, birth, loss of other coverage, etc.).

  • Plan Documents:
    A written Section 125 plan document is required-don't skip this step.

  • Payroll Deduction Compliance:
    Every pre-tax deduction must match an election form and plan document-avoid manual overrides or unapproved changes.

  • Employee Communications:
    Explain the rules, examples, and update processes to your team in plain English.
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What is a Section 125 cafeteria plan?

It's an employer-sponsored plan allowing pre-tax benefit deductions-requires a written document and employee elections.



When can employees change Section 125 elections?

Only during open enrollment or after qualifying events-clear rules must be communicated.

Do I need a written Section 125 plan document?
Yes. IRS rules require a current, written document for all pre-tax benefit programs.

How do I keep my process compliant?
Use checklists, track all elections and changes, and keep your plan document updated.

Quick Guidance for Section 125 Compliance

Make Section 125 Easy

For You and Your Employees

Most employers reach out after a payroll error or compliance question. The next step is a process that tracks elections, communicates rules, and documents every change-so your benefits stay clean and compliant.

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What to Expect From Start to Finish

Strategic Benefits, Inc. reviews your current Section 125 setup, checks plan documents and election forms, and builds an easy-to-use workflow for ongoing updates and communication. We provide checklists, templates, and employee-facing explanations-reducing admin load and risk.

Checklist for Your Appointment:


  • Current Section 125 plan document (if any)
  • List of pre-tax benefits and deduction codes
  • Recent employee elections and change requests
  • Payroll contact for deduction review
  • Common questions or compliance concerns
  • HR/admin contacts for support

Your Questions, Answered

  • What is a Section 125 plan, in plain English?

    It lets employees pay for benefits pre-tax-but only with a written plan and proper documentation.

  • When can employees change their elections?

    At open enrollment or after a qualifying event-IRS rules set what counts as a qualifying event.

  • What do we need to document for compliance?

    Plan document, signed election forms, and a record of all changes-keep everything audit-ready.

  • Will you help us communicate Section 125 rules to employees?

    Absolutely-we provide guides, templates, and support for employee questions.

  • Can you review or build our Section 125 plan?

    Yes-Strategic Benefits, Inc. reviews, updates, or drafts your plan and supports ongoing compliance.

Get Section 125 Compliance Support

Cleaner Deductions, Less Risk

Explore Your Options Today

Stay compliant and make pre-tax benefits work for your business. Strategic Benefits, Inc. provides Greenville and Upstate SC employers with Section 125 plan setup, documentation, and communication.