Smarter Benefits. Same Payroll.
Many small employers overpay twice: once on a renewal nobody shopped, and once in payroll tax on premiums that could have been pre-tax. We fix both — a written Section 125 plan that cuts FICA for you and income tax for your people, and a benefits review across the carriers we're appointed with in your state. No gimmicks, no broker fee for groups of 2–500 employees.
Licensed in all 50 states + DC · Carriers pay us; no broker fee for groups of 2–500 · No obligation
| Monthly pre-tax premium share, each | $500 |
| Annual pre-tax contributions (20 × $500 × 12) | $120,000 |
| Employer FICA avoided (7.65%) | $9,180 |
| Employees' income tax + FICA avoided (22% bracket) | $35,580 |
| Plan document + testing | quoted up front |
Illustration at a 22% federal bracket, no state income tax; FICA 7.65% each side. Plan costs vary by administrator. Not tax advice.
Sources: KFF 2026 Employer Health Benefits Survey; Mercer, Aug 2026; Rev. Proc. 2026-26.
A 30-second explainer with music. Illustrative stock photography; no real customers or staff.
The Section 125 Math, Without The Gimmicks
Your Employer FICA Savings In Two Taps
Tap your headcount and the average monthly pre-tax premium share. Assumes 80% participation; the full calculator lets you change everything.
Employer side only: participants × monthly amount × 12 × 7.65%. Before plan-document and administration costs — the full calculator nets those out.
Groom Law Group on CCA 202323006; BDO on IR-2024-65; California Department of Insurance, July 2025.
What A Compliant Plan Needs
- A written plan document adopted before the plan year
- Annual nondiscrimination testing (eligibility, contributions, key employees)
- Payroll coded so the deductions are pre-tax
- Owners handled correctly: more-than-2% S-corp shareholders and partners cannot participate
What We Quote Together
Group Medical
Fully insured, level-funded and self-funded; PPO, HMO and HSA-qualified; the carriers we're appointed with in your state.
ICHRA / CHOICE Arrangement
A fixed tax-free allowance for individual coverage — no group renewal, class-based budgets.
Dental & Vision
Employer-paid or voluntary; PPO and DHMO; orthodontia riders; standalone vision.
Life & Disability
Group term life to $50,000 excluded from income under §79; AD&D; short- and long-term disability.
Voluntary Benefits
Accident, critical illness, hospital indemnity, legal, pet — employee-paid through payroll.
Section 125 & FSAs
Premium-only plans, health and dependent-care FSAs — the compliant pre-tax layer.
Carriers available through our brokerage for group and voluntary benefits
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Carrier names and logos identify companies whose products are available to quote through our brokerage relationships; they do not imply endorsement of this site by any carrier. Availability varies by state and group size.
Illustrative photoThree Weeks From Census To Decision
Census & Current Plan
Employee ages, ZIPs, tiers, the renewal letter. One spreadsheet; we handle the rest.
Market & Model
Fully insured, level-funded and ICHRA side by side, with the Section 125 savings and any Form 8941 credit modeled on your numbers.
Decide & Enroll
You pick. We run enrollment, the plan documents, the notices and the compliance calendar.
Get A Benefits Review
A licensed benefits advisor reviews your situation and comes back with options and numbers. No broker fee for groups of 2–500 employees, no obligation.
What Employers Rate Most Important
Share of employers rating each benefit "very or extremely important" — SHRM 2026 Employee Benefits Survey.
Questions Employers Ask
What is a Section 125 plan, in plain English?
A written plan under Internal Revenue Code §125 that lets employees pay their share of premiums (and, with an FSA, eligible expenses) with pre-tax dollars. The employee skips federal income tax and 7.65% FICA on those dollars; the employer skips its matching 7.65% FICA. It requires a plan document, annual nondiscrimination testing and payroll set-up — it is not a product you buy.
How much does a Section 125 plan save an employer?
7.65% of every pre-tax dollar employees contribute, minus plan-document and administration costs. Twenty employees contributing $500 a month is $120,000 a year pre-tax and about $9,180 of employer FICA avoided — the calculator nets out the costs on your numbers.
Is the 'wellness plan that pays employees cash back tax-free' legal?
The IRS says the cash is taxable wages. Chief Counsel Advice 202323006 (2023) held that fixed-indemnity wellness payments funded with pre-tax premiums are wages subject to income tax and FICA when the employee has no unreimbursed medical expense, and IR-2024-65 and the 2024 final rule reinforced it. California's Department of Insurance issued a cease-and-desist against a related program. We do not sell those plans.
Who cannot participate in a Section 125 plan?
Self-employed owners: sole proprietors, partners, and more-than-2% S-corporation shareholders (and certain family members) cannot participate on a pre-tax basis. C-corporation owner-employees can.
Does Section 125 work in every state?
Federal income tax and FICA treatment is national. State income tax treatment is generally the same, with New Jersey a notable exception that does not conform to §125 for state income tax.
What is level funding and is it right for a 25-person group?
A self-funded plan with a fixed monthly cost and stop-loss insurance; if claims run low, part of the surplus may be refunded. KFF 2026 reports 38% of covered workers at small firms are in level-funded plans. It fits groups with good claims experience; the quote comes with the fully insured alternative side by side.