For Employers
Reduce payroll taxes. Improve benefits.
Spend nothing.
A fully compliant Section 125 program that lowers your company's FICA liability starting on your next payroll run — with no out-of-pocket cost, no reduction in employee take-home pay, and no disruption to the group plan you already have.
The straight version
Here is the whole offer in four lines.
Your employees elect pre-tax benefits through a Section 125 cafeteria plan. That reduces your company's taxable payroll. Employer FICA is 7.65% of taxable payroll — so when taxable payroll falls, your FICA bill falls with it.
The gross reduction works out to roughly $1,120 per participating employee per year. There is a program administration fee of $40 per participating employee per month. After it, your company nets about $640 per employee per year — roughly $53 a month, per person, with nothing spent to get it.
Employees receive a package of health and financial benefits, and their net paycheck does not change. Not by a dollar.
Per participating employee, per year
- Cost to implement: $0.00
- Change to employee net pay: $0.00
Most brokers quote you the $1,120 and let you discover the fee later. We put it in the second paragraph.
Eligibility
Three requirements. All three have to be true.
W-2 employees. Contractors and owners without W-2 wages don't count toward the minimum.
Hours per week. Employees must be full-time to participate. Part-time staff simply aren't included.
Qualifying health coverage. Participants must already carry health insurance — group or individual.
Missing the third one?
That's the most common gap, and it's a first step rather than a dead end. We'll put group or individual coverage in place for your team, then layer this program on top of it. Plenty of our employer clients started exactly there.
For the company
What the employer gets
Lower payroll expense
Your FICA liability drops on the next payroll run after the plan goes active. This is a reduction in an existing expense line, not a rebate you file for later.
Improved cash flow
The savings land every pay period, all year, and they scale with headcount. As you hire, the program grows with you.
A stronger benefits package
Your people gain virtual care, disability, critical illness, hospital, accident, and life coverage — without you adding budget for any of it.
Retention and recruiting
Benefits are what candidates compare when the pay is similar. This meaningfully widens the gap between your offer and the one down the street.
Minimal administrative load
Enrollment, plan documents, and employee questions are handled for you. Your payroll team adds a deduction code and a reimbursement line — that's the extent of it.
Compliance and audit support
Plan documents, Section 125 documentation, and SIMERP paperwork are issued for your file. Audit support is included at no additional charge.
For the team
What your employees get — and what they don't lose
Your staff will ask two questions. Here are both answers, before they ask.
Your net paycheck does not change.
A pre-tax deduction lowers taxable wages; a non-taxable reimbursement under the plan restores net pay. The number at the bottom of the check stays the same.
This doesn't replace your coverage.
Nothing about an employee's current health plan changes. These benefits pay in addition to whatever they already have — on top, not instead of.
Implementation
From first call to first savings
Discovery call
We confirm you meet the three requirements and walk through the mechanics and compliance. If it isn't a fit, you'll know inside those 15 minutes.
Census collection
You provide a standard employee census. We help you complete it, and it's reviewed with accounting support before anything is modeled.
Proposal call
You get the itemized, per-employee numbers: gross savings, fees, net savings, and total payroll reduction. Real figures from your real payroll, not estimates.
Enrollment
Virtual or on-site, whichever suits your operation. We handle employee education and enrollment so your HR team doesn't have to.
Program launch and payroll integration
An enrollment date is set, payroll integration is configured, and plan documents are issued for your file.
Savings begin
Your reduced FICA liability shows up on the next payroll run. New hires are added throughout the year as they become eligible.
Objections, answered
The questions employers actually ask
Is this legal?
Yes. Section 125 cafeteria plans have been in the Internal Revenue Code since 1978, and self-insured medical reimbursement plans are governed by IRC §105(b) and Treasury Regulation 1.105-11. The program is built on those provisions along with §106(a), §213(d), and §104(a)(3), and is designed to meet ERISA, HIPAA, and ADA requirements.
We'd encourage you to have your CPA review it — and we'll hand them the plan documents and code citations to make that easy. See the mechanics →
What does it cost us?
Nothing out of pocket. The administration fee is $40 per participating employee per month and is netted against the FICA savings the program produces. If the program produces no savings for an employee, there's no fee for that employee.
How much work is this for my HR or payroll team?
Modest and front-loaded. You provide a census once. Your payroll provider adds a pre-tax deduction code and a non-taxable reimbursement line. We handle enrollment, employee education, plan documents, and ongoing questions from your staff.
We already offer group health. Does this replace it?
No — and it can't. Participants are required to have qualifying health coverage. This program sits on top of your existing plan. It's additive, not a substitute, and it does not affect your current carrier relationship or renewal.
What if an employee doesn't want to participate?
Participation is voluntary. Employees who opt out are simply not enrolled, and there's no fee and no savings attributed to them. Your program runs on whoever participates.
Does this work with our payroll provider?
In nearly all cases, yes. The program requires a pre-tax deduction code and a non-taxable reimbursement line — standard functionality in every major payroll platform. Integration is configured during launch, and we'll coordinate directly with your provider or bookkeeper.
What happens if we get audited?
You'll have complete plan documentation on file from day one: the preventive care management plan document, the Section 125 cafeteria plan document, and SIMERP documentation. Audit support is provided to the company and all employees at no additional charge.
How quickly do we actually see the money?
The reduction appears on the first payroll run after the plan goes active. It isn't a credit you claim at year end or a reimbursement you file for — it's a smaller FICA liability on the payroll you're already running.
Next step
Run your numbers before you talk to anyone.
The calculator is free, takes about fifteen seconds, and doesn't ask for your email to show you the figure. If the number's too small to bother with, you'll know without a sales call.