Section 125 / Cafeteria Plans in Oklahoma City - Tax Savings for Employers & Employees

Offer More Benefits Without Increasing Your Budget

Section 125 plans, also known as cafeteria plans, are one of the smartest ways for Oklahoma businesses to help employees save on taxes while reducing payroll costs. At Eagle Group Associates, we work with small and mid-sized employers across Oklahoma City to implement flexible benefit plans that give employees more choices-and give business owners real savings.



Whether you're in Midtown, Moore, or Mustang, a Section 125 plan could be the missing piece in your benefits package.

How Do Cafeteria Plans Work?

Section 125 plans allow employees to pay for certain benefits using pre-tax dollars. These elections reduce their taxable income-and lower your payroll taxes as well.


Common eligible benefits include:


  • Health insurance premiums (medical, dental, vision)
  • Dependent care (childcare) assistance
  • Health Flexible Spending Accounts (FSAs)
  • Commuter benefits (in some plan structures)


By enabling pre-tax contributions, both employees and employers see tax advantages every pay period.

Popular Section 125 Options for OKC Employers

We'll help you choose and administer the right plan structure for your team:

  • Premium-Only Plans (POP)
    • Easiest to implement
    • Allows employees to pay health insurance premiums with pre-tax dollars
    • Often paired with group health, dental & vision insurance
  • Flexible Spending Accounts (FSA)
    • Employees contribute pre-tax to cover medical expenses not covered by insurance
    • Can include healthcare FSA and dependent care FSA
    • Must follow IRS rules for contribution limits and reimbursements
  • Full Cafeteria Plan
    • Offers a menu of benefit options from which employees can choose
    • May include voluntary benefits (accident, critical illness, etc.)
    • Designed for larger or more benefit-rich workplaces

We coordinate with plan administrators to ensure legal compliance, proper documentation, and annual nondiscrimination testing-so you can focus on your business, not the paperwork.

Why Add a Section 125 Plan?

Adding a cafeteria plan to your benefits package isn't just smart-it's strategic. Here's why:


  • Lower Payroll Taxes: Employers save on FICA and FUTA taxes
  • Higher Employee Take-Home Pay: Workers pay less in income taxes
  • Greater Flexibility: Employees can customize their benefits package
  • Improved Satisfaction: Employees appreciate options and transparency


In Oklahoma City, where small business competition for talent is fierce, this kind of tax-efficient perk can give you an edge.

FAQs

Section 125

  • Is a Section 125 plan worth it for a small team?

    Yes-even businesses with 5-10 employees can benefit. Premium-only plans are especially easy to administer and offer immediate tax savings.


  • Do employees lose money if they don't use their FSA?

    Some FSAs are "use it or lose it," but many now include a rollover or grace period. We'll help you set one up that fits your team's needs.


  • How much does it cost to implement a Section 125 plan?

    Costs are minimal compared to the tax savings. We'll provide a clear quote and help manage setup and documentation.


  • Can I offer this without changing my health insurance?

    Yes-Section 125 plans work alongside your current group health benefits. We'll show you how to integrate them easily.


  • Do I need to file anything with the IRS?

    Yes-Section 125 plans require a written document and compliance checks. We handle those pieces or partner with trusted vendors on your behalf.


Let's Make Your Benefits Go Further

A Section 125 plan can be a win-win for your business and your team. Whether you want to lower taxes, increase take-home pay, or improve retention, Eagle Group Associates can help you get there.


Call (405) 602-1554 or contact us online to request a custom Section 125 plan review today.

Person icon inside a circular arrow, indicating profile refresh or update.