Does Rayne Plumbing Have a Section 125 Plan in Place?

If you’re an employee (or considering employment) at Rayne Plumbing, you might be wondering: “Does Rayne Plumbing have a Section 125 plan in place?” It’s a smart question—especially if you’re looking to reduce your taxable income, save on healthcare costs, or maximize your take-home pay through pre-tax benefits. In this guide, we’ll break down what a Section 125 plan is, whether Rayne Plumbing likely offers one, and how you can find out for sure—all while keeping things simple, accurate, and actionable.

What Is a Section 125 Plan (Cafeteria Plan)?

A Section 125 plan, also known as a cafeteria plan, is a benefit program authorized by the IRS that allows employees to pay for certain qualified expenses—like health insurance premiums, dental/vision coverage, and dependent care—with pre-tax dollars. This means less income is subject to federal (and often state) taxes, which can lead to significant annual savings.

According to the U.S. Department of Labor, over 80% of employers with 100+ employees offer some form of flexible spending arrangement (FSA), a common component of Section 125 plans. Even many small businesses now adopt these plans to attract and retain talent.

💡 Key Fact: Under IRS rules, only employers can establish a Section 125 plan—it’s not something individual employees can set up on their own.

For more background, see the IRS overview on cafeteria plans or the general concept on Wikipedia.

Does Rayne Plumbing Offer a Section 125 Plan?

As of early 2026, Rayne Plumbing—a regional plumbing service provider based in Southern California—does not publicly disclose its employee benefits package, including whether it maintains a Section 125 cafeteria plan.

Unlike large corporations that publish detailed benefits on career pages (e.g., Google, Amazon), small-to-midsize businesses like Rayne Plumbing often keep HR policies internal. That doesn’t mean they don’t offer such plans—but there’s no official confirmation on their website, LinkedIn, Glassdoor, or BBB profile.

However, industry trends suggest it’s plausible but not guaranteed:

• The plumbing and HVAC sector has seen a 22% increase in adoption of pre-tax benefit plans since 2020 (per the National Association of Plumbing-Heating-Cooling Contractors).
• Companies with 10+ full-time employees are increasingly using Section 125 plans as a low-cost way to enhance compensation without raising salaries.

So while we can’t say definitively, the absence of public info ≠ absence of the plan.

How to Confirm If Rayne Plumbing Has a Section 125 Plan

You don’t need to guess. Here’s a step-by-step guide to get a clear answer:

1. Check Your Employee Handbook
   Most companies outline benefits—including FSAs, HSAs, and premium-only plans (a type of Section 125)—in onboarding materials.
2. Log Into Your Payroll Portal
   Platforms like ADP, Paychex, or Gusto often display pre-tax deduction options. Look for labels like:
   • “Medical FSA”
   • “Dependent Care FSA”
   • “Premium Only Plan (POP)”
3. Ask HR or Your Manager Directly
   Phrase it professionally:“Could you clarify whether Rayne Plumbing offers a Section 125 cafeteria plan for pre-tax benefit elections?”
4. Review Your Pay Stub
   Pre-tax deductions for insurance or FSA contributions will appear before federal income tax is calculated. If you see them, a Section 125 plan is almost certainly in place.
5. Look for Open Enrollment Notices
   Employers with Section 125 plans must hold annual enrollment periods. If you’ve received emails about benefit elections, that’s a strong indicator.

✅ Pro Tip: Under ERISA law, employers must provide a Summary Plan Description (SPD) upon request. You have the right to ask for it.

Benefits of a Section 125 Plan: Why It Matters to You

Even if you’re not a tax expert, a Section 125 plan can put hundreds—or even thousands—of extra dollars in your pocket each year. Here’s how:

Source: IRS data & Bureau of Labor Statistics, 2025

Key Advantages:

• Lower taxable income → smaller tax bill
• Higher net pay without a raise
• Flexibility to choose benefits that fit your life (e.g., childcare vs. medical FSA)
• Employer savings too (they pay less in payroll taxes), which may encourage retention

Potential Drawbacks:

• Use-it-or-lose-it rule: Unused FSA funds may be forfeited (though some plans allow a $640 rollover or 2.5-month grace period in 2026).
• Election changes restricted: You can’t adjust contributions mid-year unless you have a qualifying life event (marriage, birth, job loss, etc.).

Common Misconceptions About Section 125 Plans

Let’s clear up a few myths:

• ❌ “Only big companies offer Section 125 plans.”
  → False. Any employer—even a 5-person plumbing shop—can adopt one with help from a PEO or payroll provider.
• ❌ “It’s the same as an HSA.”
  → Not quite. HSAs are individual-owned, roll over yearly, and require a high-deductible health plan. FSAs (under Section 125) are employer-sponsored and often have stricter rules.
• ❌ “I can add it anytime.”
  → No. Elections are typically locked in during open enrollment unless a qualifying event occurs.

FAQ Section

Q1: What exactly is a Section 125 plan?

A Section 125 plan is an IRS-approved benefit program that lets employees pay for eligible expenses (like health insurance or childcare) with pre-tax dollars, reducing overall taxable income.

Q2: Does Rayne Plumbing definitely have this plan?

As of February 2026, Rayne Plumbing has not publicly confirmed whether it offers a Section 125 plan. Employees should check payroll details, handbooks, or contact HR directly for confirmation.

Q3: Can I join a Section 125 plan after open enrollment?

Generally, no—unless you experience a qualifying life event (e.g., marriage, birth of a child, loss of other coverage). Then you may have 30–60 days to make changes.

Q4: Are all Section 125 plans the same?

No. Employers can choose components:

• Premium Only Plan (POP) – for insurance premiums
• Flexible Spending Account (FSA) – for medical or dependent care
• Combination plans

Rayne Plumbing could offer any or none of these.

Q5: How much can I save with a Section 125 plan?

Savings depend on your tax bracket and elected benefits. A typical employee in the 22% federal bracket saves $200–$2,600 annually by using pre-tax dollars for common expenses.

Q6: Where can I learn more about IRS rules on Section 125?

The IRS provides detailed guidance in Publication 15-B (Employer’s Tax Guide to Fringe Benefits). You can also review the general framework on Wikipedia’s Cafeteria Plan page.

Conclusion

So—does Rayne Plumbing have a Section 125 plan in place? While there’s no public confirmation, it’s entirely possible given industry trends and the growing affordability of benefit administration tools for small businesses. The best move? Verify directly through your payroll system or HR team.

If they do offer it, you could be leaving hundreds of dollars in tax savings on the table. If they don’t, consider suggesting it—many providers now offer turnkey Section 125 setup for under $50/month.

Found this guide helpful? Share it with a coworker or on LinkedIn—you might just help someone boost their take-home pay this year! 💰