Transform Payroll Taxes Into Employee Prosperity
A proven tax strategy that redirects $600K+ annually from FICA waste into preventive healthcare benefits. Zero net cost. Immediate employee impact.
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What working proof can look like
Built around the same fit your site already calls out: larger W-2 teams, current coverage staying in place, and payroll-tax savings that leadership can size before rollout.
Reduce Employer Payroll Taxes with Section 125 Benefits That Preserve Your Current Health Plan
This program helps employers lower taxable payroll, keep existing coverage in place, and create measurable FICA savings with zero net cost and a typical 30-day setup.
How Section 125 Lowers FICA Costs for Employers
If you’re exploring a practical way to reduce employer payroll taxes, this Section 125 structure lowers taxable wages without forcing you to replace your current health insurance. Employers typically save $640–$1,120 per W-2 employee annually, making it a meaningful cost-control strategy for growing teams that want stronger margins without adding a new employer-paid benefit.
Because the program is layered over your existing coverage, your current carriers, brokers, and payroll workflows can stay in place. Many employers first compare the fit for their workforce by reviewing how the program works across different teams, so it helps to see how it works by industry before deciding whether it makes sense for your organization.
The structure is built around IRS Sections 105 and 125 and administered with ERISA, ACA, and HIPAA alignment. If you want to review the documentation, audit-protection language, and implementation details, you can explore the full compliance overview and browse additional Section 125 resources for employer education.
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Employees elect pre-tax participation through a Section 125 structure tied to an eligible employee health plan.
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Taxable payroll is reduced which lowers the amount subject to employer FICA taxes.
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The employer captures the payroll tax savings created by the reduced FICA exposure.
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Current health insurance stays in place so the program supplements existing coverage instead of replacing it.
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Implementation is handled for you including payroll coordination, employee enrollment, and compliance documentation.
Employer Questions About Section 125 FICA Savings
Employers typically save $640–$1,120 per W-2 employee annually in FICA taxes. A company with 100 employees could save $64,000–$112,000 per year at zero net cost. Your exact savings depend on employee count and payroll structure. The live calculator on this page updates instantly, and you can request the full breakdown after you've already seen the savings estimate.
No. The program is self-funding, which means implementation costs are covered by the FICA tax savings it generates. There is no upfront employer fee, no added employer contribution, and no need to replace your current benefit structure.
No. This program is designed to work alongside your existing health coverage, not replace it. Your current carriers, brokers, and plans can remain exactly as they are while the Section 125 structure is layered on top.
From census submission to launch, setup is typically completed in about 30 days. Our team handles payroll integration, employee enrollment, and documentation so the lift on your HR team stays minimal.
Yes. The program operates under IRS Sections 105 and 125 and is administered with ERISA, ACA, and HIPAA alignment. You can review the full compliance overview for more detail on documentation, administration, and audit support.