Have Tax Questions? Ask a Tax Expert for Answers ASAP
Section 125 Cafeteria Plan Deductions are exempt from which employment taxes (Income Tax, Social Security, Medicare, and Federal Unemployment)? If not exempt, can you tell me which tax?
Amounts that have been deducted from your paycheck for Section 125 contributions are exempt from Federal Income Tax, Social Security, Medicare and Federal Unemployment. See page 2 of the IRS Publication 15B, link below.