IRS Section 125 · Fully Legal

Save $621 per employee,
per year — and give your
team $14,400 in benefits back.

Most employers don't know they can legally redirect payroll tax dollars into employee wellness benefits — at zero net cost. We show you exactly how much you're leaving on the table.

How many W-2 employees?
You could be saving
$62,100
per year in FICA tax savings
Get My Exact Number
IRS Section 125 Validated
ACA Part A Compliant
Used by Employers Nationwide
Setup in Under 2 Weeks
The math

Here's exactly how FICA savings work.

Under IRS Section 125, pre-tax wellness benefit deductions reduce your taxable payroll — which directly reduces the 7.65% FICA tax you pay on every dollar.

$40k Employee salary
$14.4k Pre-tax deduction
× 7.65%
$1,101 FICA saved/employee
Employees Program Cost Gross FICA Savings Net Annual Savings
25 employees$12,000$27,525$15,525
50 employees$24,000$55,050$31,050
100 employees$48,000$110,100$62,100
200 employees$96,000$220,200$124,200
500 employees$240,000$550,500$310,500
Simple process

From first call to first savings in 2 weeks.

No IT work. No disruption. We handle everything.

1

15-Min Call

We review your headcount and calculate your exact savings.

2

Plan Document

We draft your Section 125 plan and handle all IRS compliance.

3

Payroll Setup

We configure your payroll integration and enroll employees.

4

Start Saving

FICA savings appear on your very next payroll cycle.

Net cost to you

It pays for itself. Every single month.

The program fee is $40/employee/month. But the FICA savings it generates are larger — meaning you come out ahead from day one.

Program fee per employee/year $480
FICA savings per employee/year $1,101
Net savings per employee/year +$621
Get My Custom Savings Report

Employee Paycheck: Before vs After

$35,000/yr employee — take-home pay stays identical.

WithoutWith Program
Monthly Gross Pay$2,916.67$2,916.67
Pre-Tax Deduction$0-$1,200.00
Federal Withholding-$193.17-$56.25
Social Security-$180.83-$106.43
Medicare-$42.29-$24.89
Post-Tax Reimbursement$0+$1,200.00
Final Net Pay$2,387.85$2,387.85
And your employees get all this

$14,400 in real benefits. Per employee. Per year.

The savings fund a comprehensive wellness package your employees will actually love — at no cost to them and no cost to you.

🏥

24/7 Telemedicine

Unlimited virtual visits for the whole family. Urgent care, women's health, mental health — no copay.

💊

1,000+ Free Prescriptions

$0 medications at 70,000+ pharmacies. Saves employees $1,250–$3,400/year.

🧠

Mental Health & EAP

Counseling, depression screenings, behavioral health support, and Employee Assistance Program.

🩹

Dental & Vision

PPO dental and vision plan included at no additional cost to employees or employers.

💳

FSA Debit Card

A debit card for prescriptions, glasses, first aid, OTC meds — usable at CVS, Walgreens, Walmart.

🧬

Health Coaching & Labs

Nurse-led coaching, 100+ biomarker blood tests, AI biometric scanning, and health tracking.

Total actuarial value: $14,400 per employee/year — layered on top of your existing benefits with zero disruption.

Compliance & credibility

100% legal. 100% compliant.

This isn't a loophole. It's established tax law used by employers since 1978.

📜

IRS Sections 125, 105(b) & 213(d)

Pre-tax deductions under the Cafeteria Plan framework. Fully documented and tested annually.

ACA Part A Compliant

Meets all Affordable Care Act requirements for minimum essential coverage.

Frequently Asked Questions

How exactly do FICA savings work?+
When employees elect pre-tax wellness benefits under a Section 125 plan, their taxable wages decrease. Since FICA taxes (Social Security + Medicare) are calculated at 7.65% of taxable wages, lower taxable wages = lower FICA for both you and the employee. The deduction is offset by a post-tax reimbursement, so employees keep their full take-home pay.
Is this a tax loophole or gray area?+
No. Section 125 Cafeteria Plans are explicitly established in the IRS tax code and have been used by employers since 1978. The program is validated under IRS Sections 125, 105(b), and 213(d), and is fully ACA Part A compliant. We handle all plan documentation and annual non-discrimination testing.
What's the actual cost to my company?+
The program fee is $40/employee/month ($480/year). The FICA savings generated average $1,101/employee/year, resulting in a net savings of approximately $621 per employee annually. It literally pays for itself and then some.
Do employees lose any take-home pay?+
No. The pre-tax deduction is fully offset by a post-tax reimbursement. Employees' final net pay stays exactly the same — while they gain access to telemedicine, free prescriptions, dental, vision, mental health support, an FSA card, and more.
Does this replace our current insurance?+
No. This layers on top of everything you already offer. There's zero change to your existing health plans. Employees get additional wellness benefits that actually reduce utilization on your primary insurance — cutting claims and lowering premiums over time.
How fast can we get started?+
Most companies are fully live within 2 weeks. Week 1: consultation, payroll review, plan document drafting. Week 2: employee enrollment and payroll integration. We manage the entire process end to end.
Get in touch

Get your custom savings report.

Tell us about your company and we'll send you a detailed FICA savings analysis within 24 hours.

or book a call directly
Schedule on Calendly

We got your request!

We'll review your info and get back to you within 24 hours with a custom savings estimate.

Every payroll cycle you wait
is money left on the table.

Book a free 15-minute call. We'll calculate your exact savings number using your real payroll data.

Get My Savings Estimate