Money Matters

S125 Deduction

What is this? My employer pays my health insurance and has for 2 years- this is a new deduction on my pay check and I'm trying to figure out what changed. I did not make any changes to my benefit coverage. Thanks!

Re: S125 Deduction

  • Section 125 Cafeteria Plan? 

    that means that you set aside pre-tax dollars to use for medical/dental expenses.  The amount should not be included in taxable wages.

    If your employer pays everything related to medical for you than this might be an error and I would talk to your payroll representatives.

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