IRS Section 125 · Wellness Cafeteria Plan

Stop overpaying FICA
on every paycheck

If you have 50+ W2 employees, you may qualify for an IRS-approved plan that reduces your payroll taxes and adds employee wellness benefits — at no net cost to your business.

Independently verified by
Hitesman Law KCP Tax Advisory Group CBIZ Advisors
The opportunity

Most employers have never heard of this

Every payroll cycle, you pay 7.65% FICA on each W2 employee's wages. A Section 125 Wellness Cafeteria Plan allows employees to receive pre-tax wellness benefits — which reduces the wages subject to FICA.

The result: lower employer FICA liability, lower workers comp premiums in most states, and a real benefit your employees can use.

This isn't a loophole. It's been in the IRS code for decades. Most employers just don't know it exists.

Three steps

How the Wellness 125 Plan works

  1. 01

    We review your payroll

    You share basic payroll info. We calculate your potential FICA and workers comp savings.

  2. 02

    Employees enroll in the plan

    Participating employees gain access to wellness benefits — telehealth, Rx discounts, mental health support — at no cost to them.

  3. 03

    You keep the savings

    Lower FICA taxes, reduced workers comp premiums, better employee retention — with no net cost to implement.

Results

Employers seeing real savings

“We've seen significant reductions in both FICA taxes and workers compensation premiums. The implementation was seamless and the savings were immediate.”

Black Tiger Transportation

“As CFO, compliance was my top concern. After reviewing the legal and tax opinion letters, I was confident this plan is fully IRS-compliant. The savings have been substantial.”

Compliance

Backed by independent legal and tax authorities

Hitesman Law

Legal opinion confirming full IRS compliance of the Section 125 plan structure.

KCP Tax Advisory Group

Tax opinion letter verifying the Section 125 structure and employer tax benefit eligibility.

CBIZ Advisors

One of the nation's top accounting firms, independently verified plan compliance.

$500,000 Audit Protection Guarantee included with every plan.
Get started

Find out if your business qualifies

Takes 60 seconds. No obligation. A benefits specialist will reach out within 1 business day.

Your information is secure and will never be sold.

FAQ

Common questions

Is this really IRS-compliant?

Yes. Section 125 has been part of the IRS tax code since 1978. Our plan has been independently reviewed by Hitesman Law, KCP Tax Advisory Group, and CBIZ Advisors — three separate legal and tax authorities.

What does it cost to implement?

There is no net cost to the employer. The savings from reduced FICA and workers comp premiums typically exceed any administrative fees.

What benefits do employees receive?

Employees gain access to wellness benefits including telehealth, prescription discounts, mental health counseling, and preventive care — at no cost to them.

How long does implementation take?

Most employers are fully enrolled within 2–4 weeks of signing.

Do I need to change my existing health insurance?

No. The Wellness 125 plan works alongside your existing group health coverage. There are no changes required to your current benefits.