Your Employees Save More.
Your Company Pays Less.
Everyone Wins.
Section 125 lets your employees pay for benefits with pre-tax dollars, reducing their taxes and yours. It's legal, proven, and most small businesses don't know about it.
Real Results for Your Business
In Documented Savings
Generated for our clients across all implementations
Implementations Completed
Successful plan launches from small to large organizations
Client Retention Rate
Companies stay with us long-term with year-over-year satisfaction
You're Overpaying in Payroll Taxes. Here's Why.
Every dollar your employees spend on health insurance, FSAs, and other qualified benefits is subject to FICA taxes unless you have a Section 125 plan in place.
✕ Without Section 125
- Employee pays health premiums with after-tax dollars
- Both you and your employee pay FICA (7.65% each) on those dollars
- For 50 employees, that's an estimated $36,000+ per year in unnecessary payroll taxes
✓ With Section 125
- Employee pays health premiums with pre-tax dollars
- Neither party pays FICA on those deductions
- Same benefits, same coverage, structured correctly to reduce taxes
Quick Example: 50 Employees
Average salary of $50,000 with $6,000 in annual pre-tax deductions per employee at 75% participation:
Estimated employer savings/yr
Estimated employee savings/yr
Estimated total tax savings/yr
Based on 7.65% FICA rate. Actual results vary by salary, participation, and plan design.
Section 125: The Legal Tax Advantage Most Small Businesses Miss
It's not a loophole, it's right there in the IRS tax code. Here's what it does for you.
Reduce Payroll Taxes
Save up to 7.65% on every pre-tax dollar your employees contribute to qualified benefits. That adds up fast.
Happier Employees
Employees take home more money without any increase in salary expense. Better benefits at a lower cost to everyone.
Compete for Talent
Offer a benefits package that rivals larger companies. Attract and retain employees without blowing your budget.
Compliance Handled
Plan documents, nondiscrimination testing, and IRS requirements, we guide you through every step so you stay compliant.
See Your Savings in 30 Seconds
Our free FICA Savings Calculator shows you exactly how much your company could save with a Section 125 plan. Enter your employee count and average salary, we do the math.
Open the CalculatorSample estimate. Your results will vary.
Learn More
What Is a Section 125 Plan?
The complete guide to how cafeteria plans work, who qualifies, and what benefits can be included.
Read the Guide
FICA Savings for Employers
A breakdown of exactly how payroll tax savings work, with real numbers for businesses of different sizes.
Learn More
Pre-Tax vs. Post-Tax Benefits
Understand the difference and why it matters for your bottom line and your employees' paychecks.
Learn More
Ready to get started?
David Toves is a licensed benefits professional who specializes in Section 125. He'll walk you through everything and help you find the right plan for your team.
Talk to DavidEducational Content Only: The information provided on benefitsgenius.co is for educational and informational purposes only. It does not constitute insurance, tax, legal, or financial advice. Consult with qualified professionals regarding your specific situation.
Savings Estimates: All savings figures are illustrative and based on general FICA tax rates (7.65%) and assumptions. Actual savings vary based on your organization's size, payroll structure, employee participation rates, plan design, and applicable state/federal regulations. Consult your tax advisor for projections specific to your situation.
Ready to see how much your company could save?
Connect with David Toves for a free, no-obligation consultation — or ask Sarah a quick question anytime.
