Salary Conversion

Section 125 of the Internal Revenue Code allows employee contributions for medical, dental and life insurance plans to be paid before income taxes (federal and state) and Social Security (FICA) taxes are deducted. This plan allows full-time employees to increase their take-home pay by reducing their taxes.

Once any employee decides to enter the Cafeteria Plan, they become locked-in to their Benefit package and unable to change plans except during Open Enrollment. Open Enrollment is from October through December of every year.