How an IRS Cafeteria Plan Can Lower Your Tax Bill?
If you’ve ever looked at your paycheck and wondered where a chunk of it disappeared before it even hit your bank account, you’re not alone. A lot of that mystery money lives inside benefits. And one of the biggest, most misunderstood benefit tools out there is the IRS cafeteria plan . It sounds fancy. Maybe even suspicious. But it’s actually one of the most practical, everyday tax-saving tools businesses use. This isn’t going to be one of those stiff, legal-sounding breakdowns. We’re going to talk like real people who deal with real payroll issues. No fluff. No robotic explanations. Just what you need to know, and why it matters. What an IRS Cafeteria Plan Really Is? At its core, an IRS cafeteria plan is a benefits structure that lets employees pay for certain benefits with pre-tax dollars. That’s it. Nothing mystical. The name comes from the idea of choice, like picking food in a cafeteria. You don’t take everything. You choose what fits. Health insurance premiums. Dental. Vision. Som...