What is Section 125?
A Section 125 cafeteria plan lets you pay for certain benefits, like health insurance, with pre-tax dollars.
Premiums paid through a Section 125 plan are generally excluded from income tax and from Social Security and Medicare wages.
That's why your Social Security wages can be lower than your gross pay.
Where to find it on your paystub
Usually shows as Medical, Dental, or Vision deductions, sometimes marked Sec 125.
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