$362,833
Hospital, Tennessee
saved with 396 employees
saved with 396 employees
about $916 per employee
Prosperity Business
Is Your Business Overpaying in Payroll Taxes?
Take the free 7-question Section 125 Qualification Quiz and find out in under a minute.
Built for business owners with 20 or more full-time employees.
7 quick questions. About 60 seconds. Instant results emailed to you.
Free.No obligation.No sales pitch.
Answer 7 quick questions to see if your business qualifies.
New to Section 125?
Never Heard of Section 125? Here’s the Short Version.
Section 125 is part of the IRS tax code, and businesses have used it for over 40 years. It lets employees pay for certain benefits with pre-tax dollars. That lowers the wages your payroll taxes are figured on, so your business pays less. Your employees take home more. You keep your current health insurance exactly as it is.
Learn More About Section 125Questions Business Owners Ask
What is a Section 125 plan?
It’s a section of the IRS tax code. This plan is a packaged wellness benefit program, so there’s no menu to pick from and no confusing enrollment choices. Employees pay for it with pre-tax dollars, and that creates payroll tax savings for your business.
How does my business save money?
Your payroll taxes are figured on a lower amount of taxable wages. Businesses save about $750 per employee per year on average, and many land closer to $850. The calculator shows the full range, $650 to $850 per employee.
Does it cost my business anything?
No. There are no out-of-pocket costs to your business.
What do my employees get?
A raise in take-home pay, plus wellness benefits like 24-hour telemedicine and prescription drug access. Nobody’s pay is cut.
Does this replace the health insurance I already offer?
No. It works alongside whatever you have now. Nothing about your current plan changes.
Who qualifies?
Businesses with 20 or more W-2 employees, not counting owners or 1099 contractors. Small businesses, nonprofits and franchises can all qualify.
Is this legal and safe?
Yes. The plan is fully insured, approved in all 50 states by the Department of Insurance, and backed by an independent legal opinion.
How long does it take, and how much work is it for me?
Setup usually takes a couple of weeks, depending on how quickly your business gets us what we need. Full implementation takes two pay cycles. The first is a test run, and the second is the live run. Your payroll provider applies the deduction, and your day-to-day operations don’t change. It starts with a free payroll analysis and no obligation.
What You’ll Learn
What Your Results Will Show You
Your personalized results will help you understand where your business may have an opportunity to improve payroll efficiency and employee benefits.
- Whether your business meets the headcount and hours requirements
- How much you could be saving in payroll taxes each year
- What your employees gain in extra take-home pay and wellness benefits, at no added cost
- What the next step looks like if you qualify
This doesn’t replace any insurance you currently carry.
Real Results From Real Organizations
Actual 2025 savings from businesses and organizations using the Section 125 plan.
$1,978,041
Medical Association, Chicago
saved with 2,271 employees
saved with 2,271 employees
$871 per employee
$122,793
Municipality, Ohio
saved with 152 employees
saved with 152 employees
about $808 per employee
$47,000+
Restaurant, Palm Springs, CA
saved per year with 61 employees
saved per year with 61 employees
Most businesses land between $650 and $850 per employee.
Results are based on actual 2025 savings and vary by business. Your free analysis gives you your exact numbers.
This isn’t a call center. You’ll talk directly with Jim.
Jim Saar, 40 Years of Experience, NPN #74416
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