RMI 3501 Midterm: Exam 1 review

• School: Temple University
• Department: Risk Management and Insurance
• Course: RMI 3501
• Professor: drennan

Document Summary

This client is not necessarily sold on the idea as they are simply asking you for expert advice. By giving employees choices between both taxable and nontaxable benefits way to enhance your employee benefits package, in return giving the employer the ability to attract and retain better human capital. Reduces gross pay for employees that elect to participate in a section 125 by reducing gross pay income for income tax purposes. Employer enjoys a reduction in their payroll tax liability by. Often can offset a portion of the premiums reducing with the tax savings. 22: identify and briefly discuss one argument to present to employees during an open enrollment meeting to convince them to participate in a section 125 plan [however you choose to implement it]. Participating in a cafeteria plan reduces an employee"s taxable salary and increases the percentage of their take-home pay, thus increasing their spendable income through pre-tax salary reduction.