Section 125 of the Internal Revenue Code, initially implemented by Congress in 1978, allows employers to offer employees the choice between cash compensation and certain nontaxable (qualified) benefits. Premium contributions toward a qualified benefit are excludable from an employee’s gross income, thus allowing these expenses to be deducted prior to the calculation of Social Security or federal income tax responsibilities. Healthcare, vision care, dental care, group life and long-term disability coverage are considered qualified benefits for these purposes.