IRS Section 125 · Fully Compliant

Cut your payroll taxes. Strengthen your benefits. Pay nothing out of pocket.

Employer Savings Group helps companies with 35+ W-2 employees reduce FICA payroll taxes by up to $1,186 per employee, per year — while delivering a richer wellness benefits package without changing take-home pay or disrupting current health plans.

Get My Free Savings Estimate → How It Works
$650–$1,186 Avg. annual savings per W-2
30–45 days To full implementation
$0 Out-of-pocket employer cost

Estimate Your FICA Savings

See how much your business could save annually.

Estimated Annual FICA Savings
$42,500
Recurring year over year
The Process

Four steps from discovery to savings

A proven, IRS-compliant rollout that integrates with your existing payroll and benefits — no replacement of current health plans required.

STEP 01

Census Review

We analyze your payroll and W-2 census to calculate your exact FICA savings opportunity. Quick, non-intrusive, and obligation-free.

STEP 02

Plan Design

Our specialists draft your Section 125 Cafeteria Plan, SIMERP, and PCMP documents — fully aligned with IRS, ACA, and HIPAA standards.

STEP 03

Employee Activation

We handle enrollment, payroll integration, and employee education. Your team adopts new wellness benefits without losing a dollar of take-home pay.

STEP 04

Ongoing Compliance

We administer plan documents, nondiscrimination testing, and annual updates so you stay audit-ready and your savings stay consistent.

A Win for Both Sides

Built so everyone wins — employer and employee

Real tax relief for your business. Real wellness benefits for your team. No trade-offs.

For Employers

Lower Costs · Stronger Retention

  • Substantial FICA Tax Reduction

    Save 7.65% of payroll on the dollars routed through the plan — typically $650 to $1,186 per W-2 per year.

  • Stronger Employee Retention

    Offer enhanced benefits without raising salaries. A more attractive package reduces costly turnover.

  • Zero Disruption to Current Plans

    Stacks on top of your existing health coverage. No replacements, no carrier changes, no headaches.

  • Cash-Flow Positive From Day One

    $0 setup fees. Administration is funded out of generated tax savings — you keep the majority.

For Employees

More Coverage · Same Take-Home

  • Same or Higher Net Take-Home Pay

    Pre-tax payroll structuring means employees keep just as much — often more — of every paycheck.

  • $0 Copay Telehealth & Mental Health

    24/7 virtual care, mental health support, and chronic care navigation — included for employees and family.

  • Wellness Programs & Health Screenings

    Preventive screenings, biometric assessments, and wellness coaching — proactive care, not just reactive coverage.

  • Pre-Tax Rx & Supplemental Coverage

    Prescription packages and supplemental benefits accessible without burdening employee paychecks.

$1,186
Maximum annual employer FICA savings, per participating W-2
100%
IRS Section 125-compliant plan design and ongoing administration
45 Days
Or fewer to full rollout, with minimal disruption to operations
Qualification

Is your business a fit?

The program is designed for established U.S. employers with a stable W-2 workforce.

You likely qualify if you have:

  • 35+ full-time W-2 employees (not 1099 contractors)
  • Employees earning ~$32K+ annually on average
  • Standard payroll system (we integrate with all major providers)
  • U.S.-based business entity — Corp, LLC, Partnership, or Non-Profit
  • Existing or no health plan — both work
  • Interest in retention and reducing payroll cost
Common Questions

Straight answers, no fine print

No. The plan is structured so net take-home pay stays the same — and in many cases improves slightly thanks to reduced employee-side FICA. We run a payroll census analysis before activation to confirm zero negative impact for any participating employee.
No. Our program stacks on top of your existing health plan. There are no carrier changes, no plan design adjustments, and no replacement of current benefits required.
Yes. The program is built on IRS Section 125 (Cafeteria Plan) combined with a Self-Insured Medical Expense Reimbursement Plan (SIMERP) and a Preventative Care Management Program (PCMP). Plan documents are reviewed by CPAs and ERISA attorneys, and we handle nondiscrimination testing and ongoing compliance.
Zero out-of-pocket. There are no setup fees and no upfront costs. Administration is funded directly from the FICA tax savings the plan generates — meaning the program is cash-flow positive for your business from day one.
Typically 30 to 45 days from the initial census review to full payroll activation. Larger or more complex employers may run slightly longer. Our team manages every step, including employee education and payroll integration.
Employer Savings Group works with a licensed third-party fulfillment partner to administer plan documents, payroll integration, employee enrollment, and ongoing compliance. All program enrollments and detailed plan questions are handled by licensed professionals.

See exactly what your business could save.

Send a quick payroll census and we'll deliver a detailed, no-obligation savings estimate within 48 hours.

Request My Savings Estimate →