A Smarter Approach to
Employee Benefits
Helping businesses reduce costs, improve employee well-being, and enhance workplace satisfaction—without interfering with existing health plans or increasing expenses.
What Is a Section 125 Plan and Why It Matters?
A Section 125 Cafeteria Plan is an IRS-approved benefit program that allows employees to pay for eligible healthcare expenses before taxes are taken from their
paycheck. This reduces taxable income for employees while also lowering payroll taxes for employers.
Why Businesses Are Adopting Section 125 Plans
As healthcare costs rise, many companies are struggling to offer competitive benefits without increasing expenses. A Section 125 Plan provides a cost-neutral way to improve benefits while reducing payroll tax liabilities.
Companies we integrate with
How It Benefits
Employers & Employees
For Employers:
Save money – Reduce payroll taxes by an average of $600- $700 per qualified W2 employee per year
Improve retention – Increase employee satisfaction and reduce turnover by up to 60%
No added costs – The program is employee-funded and requires no employer contributions
Full compliance – Structured within IRS and Department of Labor guidelines
For Employees:
Lower healthcare costs – Pay for medical, dental, and
vision premiums using pre-tax dollars
Covers essential expenses – Pre-tax savings apply to
healthcare, dependent care, and commuter benefits
No extra steps – Payroll deductions are automatic and
easy to manage
30%
Increase in Employee Benefits Participation
with Pre-Tax Savings
60%
Decrease in Employee
Turnover
for Businesses Offering Pre-Tax Benefits
4X
Higher
Retention
Companies with Competitive Pre-Tax Benefit Packages
Industries That Benefit the Most
A Section 125 Plan works for any company, but it’s especially valuable for high-labor and high-turnover industries where retaining employees and controlling costs are key.
Who We Work With:
Manufacturing & Industrial – Providing affordable benefits for
essential workers
Healthcare & Senior Care – Helping hospitals, clinics, and care
facilities attract and retain staff
Construction & Skilled Trades – Offering tax-advantaged benefits to tradespeople and contractors
Logistics & Transportation – Supporting trucking, warehousing, and
delivery companies
Retail & Hospitality – Enhancing compensation in competitive, high-
turnover industries
Professional Services – Helping firms like law offices and accounting
firms optimize benefits
How Section 125 &
SIMERP Work Together
Many businesses need cost-effective ways to improve employee benefits while staying compliant with IRS and Department of Labor rules. A Section 125 Cafeteria Plan combined with a Self-Insured Medical Expense Reimbursement Plan (SIMERP) provides a structured way to achieve tax savings for both employers and employees.
How It Works:
Section 125 Plans allow employees to pay for medical expenses with pre-tax dollars, lowering taxable income.
SIMERP enables businesses to offer after-tax reimbursements for certain medical expenses while staying IRS-compliant.
The program requires a Section 125 Plan, a plan document, and a SIMERP to ensure compliance and maximize savings.
By using this approach, businesses lower payroll taxes, increase employee satisfaction, and improve retention—all while following federal regulations.
Fast, Hands off and Simple implementation
Quick implementation
Most businesses are fully integrated within a few weeks
No added workload
Our team works directly with your payroll & HR teams
IRS & DOL compliance
Ensuring audit-ready, legally sound plans
No impact on existing
benefits
Most businesses are fully integrated within a few weeks
Our clients get the plan implemented from start to finish in just 30 days.
Frequently Asked Questions
What does this program cost employers?
There is no additional cost. Employers save money through reduced
payroll taxes, making it a cost-neutral solution.
How much do employees save?
Employees typically save $600-$700 per year by using pre-tax dollars for healthcare and qualified expenses.
How much do employees save?
No, a Section 125 Plan works alongside your existing benefits and does not replace major medical coverage.
Is this only for certain industries?
No, any business can benefit. However, companies in manufacturing, healthcare, logistics, construction, and retail see particularly strong results.
How long does implementation take?
Most businesses are fully set up within a few weeks with no extra work required.
