A Premium Benefit Package.
$0 Cost to Your Business.
The Section 125 Cafeteria Plan lets you offer employees hospital indemnity, telemedicine, prescriptions, and wellness benefits — all pre-tax — while lowering your payroll taxes immediately. No employer contribution required.
The IRS Lets You Pay Employees Better — For Free.
A Section 125 Cafeteria Plan is an IRS-approved benefit structure that allows employees to pay for certain benefits using pre-tax dollars. When employees redirect even a small portion of their gross pay toward these benefits, your business pays less in FICA payroll taxes — automatically, immediately, every payroll cycle.
It costs your business nothing to set up and nothing to maintain. In fact, most employers save money the moment the first employee enrolls.
You Pay $0 in Premiums
All benefit costs are funded by employee pre-tax payroll deductions. There is no employer contribution required — ever.
Your FICA Taxes Drop Immediately
Every dollar employees redirect pre-tax reduces your 7.65% FICA obligation — saving you real money on every payroll.
Employees Get More Take-Home Pay
Pre-tax benefit deductions lower employees' taxable income too — meaning more money in their pocket each month.
See What a Section 125 Plan Saves a Business Like Yours.
The math is simple: when employees pay for qualifying benefits pre-tax, the taxable payroll your business is assessed against goes down. That 7.65% FICA savings adds up fast — especially across a team.
The example to the right shows a modest 25-employee business. Larger teams see proportionally larger savings, all without spending a dollar on premiums.
On top of the employer savings, every enrolled employee also saves on their own income taxes — making this one of the most genuinely valued benefits you can offer.
Calculate My Business Savings* For illustration purposes. Actual savings vary based on employee enrollment, benefit elections, and payroll structure. Bruce provides a custom calculation for your business.
Benefits Employees Actually Use Every Day.
The Section 125 plan bundles meaningful, practical benefits that employees notice and appreciate — not just paperwork they never think about.
Hospital Indemnity Coverage
Daily cash benefit for hospital stays — helps cover deductibles, lost income, and expenses your primary plan doesn't touch.
Telemedicine Access
24/7 virtual doctor visits for employees and their families — at no cost per visit. Reduces ER and urgent care usage immediately.
Prescription Drug Savings
Deep discounts on generic and brand-name medications — often saving employees hundreds per year compared to retail pharmacy pricing.
Wellness & Preventive Benefits
Annual wellness exams, preventive screenings, and health coaching tools that keep employees healthier — and reduce claims long-term.
Critical Illness Riders
Optional cancer, heart attack, and stroke cash benefit add-ons that employees can elect through the same pre-tax payroll structure.
Accident & Disability Options
Voluntary accident coverage and short-term disability available as employee-paid add-ons — zero cost to the employer, high value to employees.
Almost Every Business Qualifies.
Section 125 plans are available to virtually any employer with W-2 employees — from a two-person operation to a multi-location business with hundreds of staff. If you have employees, you can offer this benefit.
Small Businesses (2–50 Employees)
Level the playing field with large corporations — offer a robust benefit package without the cost. Ideal for businesses that currently offer no benefits at all.
Mid-Size Companies (51–500 Employees)
Reduce benefit costs and payroll tax liability at scale. The savings compound significantly as enrollment grows.
Businesses With Existing Benefits
A Section 125 plan can layer on top of your existing health insurance — adding supplemental benefits pre-tax and reducing what you're already paying in FICA.
Businesses Offering No Benefits Yet
If you've never been able to offer benefits because of cost, this is the starting point. You offer real value to employees — and it costs you nothing.
Setup Is Simple. We Handle Everything.
From plan design to employee enrollment, Bruce manages the entire process — your team is just notified of a new benefit and asked to enroll.
Business Review
A quick call to learn about your team size, current benefits, and payroll structure. Bruce calculates your estimated FICA savings on the spot.
Plan Design
Bruce designs a Section 125 benefit package tailored to your workforce — selecting the right mix of benefits to maximize employee participation.
Employee Enrollment
Enrollment is handled entirely by phone. Employees are presented the benefit, educated on value, and enrolled — you don't lift a finger.
Savings Begin
From the very next payroll cycle, your FICA tax liability drops. Benefits are active. Bruce remains your ongoing agent for any questions or changes.
Pair Your Section 125 Plan with a Group IUL
The most powerful business benefit combination available: a Section 125 plan lowers your payroll taxes while a Group IUL gives employees a tax-free retirement benefit — both at $0 cost to you. Together, they make your business nearly impossible to leave.
Section 125 Plan FAQs
The questions business owners ask most before setting up a Section 125 plan.
Find Out Exactly How Much Your Business Saves.
Tell Bruce about your team and he'll calculate your exact projected FICA savings, design a benefit package for your employees, and walk you through the entire setup — at no cost and no obligation.
- $0 employer cost — zero premium contribution required
- FICA savings start from your very next payroll cycle
- Works for businesses of any size — 2 to 10,000 employees
- Full enrollment handled by Bruce — no admin burden on you
- Can be paired with Group IUL for maximum benefit impact
Get My Free Section 125 Analysis
Bruce will calculate your savings and design your plan within one business day.
🔒 Completely confidential. Your information is never sold or shared.