Your team keeps more of every paycheck. Your payroll tax drops.
It's called Section 125, an IRS tax code that lets your employees take home more on the same paycheck while you save the matching payroll tax. We show you the math, then connect you with a licensed pro to set it up. Built for HVAC shops, restaurants, trucking fleets, home care, and other owner-run businesses.
Estimate your pre-tax savings
Drag the slider to size it for your business
Your company saves
$11,628 /yearYour employees save
$29,868 /year totalTotal annual savings
$41,496 /yearBased on $55K avg salary, 75% participation. Results vary.
Employer Saves
7.65%
on FICA taxes
Employees Save
20%+
on benefit costs
Federal law
1978
IRC §125
What we help organize
The facts worth getting straight before your next benefits decision
A Benefits Readiness Snapshot organizes these in plain English. It is a review, not advice — a licensed advisor, TPA, or partner verifies the details.
Renewal timing
How much runway you have before the next decision, and what to ask before you accept, renegotiate, or compare.
Section 125 / pre-tax payroll deductions
Whether employee deductions are pre-tax and supported by a Section 125 plan document.
Broker / PEO / payroll / TPA path
Which provider path may be worth reviewing for the problem you are actually trying to solve before you pick one.
ICHRA / QSEHRA / group health questions
A plain-English look at the benefit structures worth reviewing for your size and situation.
Documentation questions
Which plan documents and payroll records are worth confirming before a partner reviews them.
First-time benefits setup
If you are offering benefits for the first time, a review of your options before you commit.
See the before & after
Watch how a Section 125 plan transforms a $50,000 salary. Both the employer and employee save — it takes less than a minute to see how.
The numbers behind pre-tax benefits
Section 125 plans aren't new. They've been saving employers and employees money since 1978. Here's the data.
Most small businesses miss out on these savings
While nearly half of private-sector workers have access to FSAs, adoption among small and mid-size businesses lags behind. Often, owners don't know the option exists or think it's too complicated. It's not.
47 educational guides
Plain-English articles covering Section 125, FSAs, HSAs, compliance, and industry-specific guidance
5 free calculators
FICA savings, ROI, benefits comparison, savings estimator, and more. No account required
Expert broker network
Free, no-obligation consultations with licensed benefits brokers who specialize in Section 125
Example: 50-employee company
$55K avg salary • 75% participation (38 employees) • $4,000 avg pre-tax deduction
38 employees × $4,000 × 7.65%
38 employees × $4,000 × 19.65% (7.65% FICA + 12% federal)
$4,000 × 19.65% effective rate
Based on IRS FICA rates (7.65%) and 12% federal income tax bracket. Employees in higher brackets save more. Actual savings depend on salary, participation, and plan design. Run your own numbers →
Not sure what to review before your next benefits decision?
Start with a plain-English Snapshot. We organize the facts before a broker, TPA, PEO, payroll provider, or benefits partner reviews the details.
Start a Benefits Readiness SnapshotHow it works
From learning to savings in four simple steps.
Learn the Basics
Read our plain-English guides on Section 125 and pre-tax benefits.
Run Your Numbers
Use our free calculators to estimate your company's FICA savings.
Talk to David
Connect with a benefits broker for a free, personalized consultation.
Start Saving
A licensed professional handles setup with your payroll provider. Once your plan is in place, eligible deductions run pre-tax.
Ready to talk? Meet David.
David Toves is a licensed benefits professional who can walk you through how Section 125 works for your business. Free consultation, no obligation.
Tell us where to reach you and David follows up within one business day.
Get your business's number
See what Section 125 could save you, and keep the people you've trained. No cost, no obligation.
Quick question? Ask Sarah.
Our AI benefits assistant can answer questions about Section 125, FICA savings, and plan details — instantly, 24/7.
What is Section 125?
Get a quick overview of how Section 125 pre-tax benefits work and why they matter for your business.
Built for owner-run businesses
Plain-English tools and guides to help you cut payroll tax and keep good people, no HR department required.
Free tools. No account needed
See what Section 125 could save your company before you commit to anything.
FICA Savings Calculator
Estimate employer and employee FICA tax savings based on your headcount.
Calculate nowSavings Estimator
Estimate total company-wide Section 125 savings across all benefit types.
Estimate nowROI Calculator
Calculate your return on investment and see how quickly a plan pays for itself.
Calculate ROILearn at your own pace
Plain-English guides on benefits, taxes, and compliance.
2026 FSA, HSA & Dependent Care FSA Limits
The 2026 IRS limits: health FSA $3,400, dependent care FSA $7,500, HSA $4,400 self-only / $8,750 family, with carryover rules and IRS sources.
How Much Does a Section 125 Plan Save?
Section 125 saves employers 7.65% FICA on every pre-tax dollar, and saves employees income tax plus their own 7.65%. See the 2026 employer and employee math.
Is a Section 125 Plan Worth It for a Trucking Company Your Size? A Straight Answer
A no-hype, decision-stage look at whether a Section 125 cafeteria plan makes sense for a small-to-midsize carrier: what it takes to set up, why only W-2 company drivers count, when the employer FICA savings outweigh the admin cost, and when it is not worth bothering.
Ready to see what's possible?
Connect with David for a free, no-obligation consultation. See how much your company could save.
Disclaimer: The information on benefitsgenius.co is for educational purposes only and does not constitute insurance, tax, legal, or financial advice. Fixed indemnity insurance is supplemental coverage and does not satisfy ACA requirements for minimum essential coverage. Consult with qualified professionals regarding your specific situation.
