IRS Section 125

Quantum Health Benefits leverages Section 125 of the Internal Revenue Code, which has approved health benefits on a pre-taxed basis since 1978. Furthermore, fully insured supplemental Section 125 plans were specifically adopted into the Internal Revenue Code in 2018, solidifying the tax advantages for both employees and employers.

IRS Section 125, commonly known as a Cafeteria Plan, allows employees to customize their benefits package by choosing between taxable and non-taxable benefits. The primary advantage of this plan is that it enables participants to pay for these benefits using pre-tax dollars. By deducting these costs from gross income before federal, state, and FICA taxes are applied, employees effectively lower their overall tax liability and increase their take-home pay.

Employees' pre-tax contributions are exempt from Federal, State, and Social Security taxes, while employers save on FICA, FUTA, and Workers' Compensation premiums.​