If you’re an employer or employee wondering how to get more out of your paycheck without spending more, the answer lies in a powerful but often overlooked tool: pre tax payroll deductions. These aren’t just accounting tricks—they’re real strategies that can save both companies and their teams hundreds or even thousands of dollars each year.

Let’s break it down in simple terms, show you why it matters, and introduce Elevate+—a modern, compliant solution that leverages Section 125, PCMP, and SIMRP to deliver one of the most benefit-rich programs in the country.

What Are Pre-Tax Payroll Deductions?

Amounts taken from an employee’s paycheck before taxes are calculated are pre-tax payroll deductions. These deductions lower the taxable income, therefore reducing the federal income tax, Social Security, and Medicare tax the employee owes. That also implies savings for companies on payroll taxes.

Common pre-tax deductions include:

• Health plan premiums
  
• Health Savings Accounts (HSAs)
  
• Flexible Spending Accounts (FSAs)
  
• Retirement plan contributions (like 401(k)s)
  
• Commuter benefits
  

These are great on their own, but they only scratch the surface. With the right program, you can unlock even more value.

Why Should You Care About Pre-Tax Payroll Deductions?

Let’s look at the impact of pre-tax deductions for both employers and employees:

For Employers:

• Save roughly $600/year per W2 employee in payroll taxes
  
• Reduce healthcare claims (avg. $1,400 in savings over 3 years)
  
• Boost employee satisfaction and retention—without spending more
  
• Improve your bottom line without making major changes
  

For Employees:

• 3–4% increase in take-home pay (around $100/month)
  
• Access to $0 copay Telehealth and mental health resources
  
• Family-wide benefits with no change in net pay
  
• Enhanced coverage for critical illness, disability, and more
  

Pre-tax payroll deductions aren’t just a way to save. They’re a way to deliver better care, boost morale, and modernize your benefits—without new costs or complexity.

Elevate+ — A Smarter Approach to Pre-Tax Payroll Deductions

Elevate+ from Elevate Benefits isn’t just another Section 125 plan. It’s a fully compliant, automated benefits platform that combines:

• A Section 125 pre-tax framework
  
• A Preventative Care Management Plan (PCMP)
  
• A Self-Insured Medical Reimbursement Plan (SIMRP)
  

By integrating these three components, Elevate+ creates one of the most compliant and cost-effective benefit solutions available. It’s designed to help employers give more while spending nothing, and help employees get more without giving up net pay.

Key Benefits of Elevate+ for Employers

• Save ~$600 per employee per year in payroll tax savings
  
• No out-of-pocket cost to implement or maintain
  
• Reduce healthcare claims by up to $1,400 per employee over 3 years
  
• 30–45 day rollout with minimal lift from HR or payroll
  
• Boost workforce retention, morale, and performance
  

With Elevate+, you’re not just managing benefits—you’re building a smarter, more resilient business.

Key Benefits of Elevate+ for Employees

• 3–4% increase in net take-home pay
  
• $0 copay 24/7 Telehealth, mental health, and wellness coaching
  
• Access to Mayo Clinic wellness tools and a personalized health dashboard
  
• Coverage for spouses and dependents included
  
• Universal Life, Critical Illness, and Disability protection
  

Pre-tax payroll deductions through Elevate+ unlock real, practical support for your team, without disrupting what they already have in place.

Why Elevate+ Stands Out

Elevate Benefits was built to help companies deliver more value to their teams, without increasing payroll costs or introducing complex systems. We believe modern benefits should work for everyone: employers, employees, and families.

Here’s what makes Elevate+ different:

• Fully automated and compliant with IRS rules
  
• No disruption to existing health plans or payroll processes
  
• No cost to employers or employees
  
• Tailored to companies with over 40,000 enrolled employees
  
• Designed to reduce tax waste and support family-wide wellness
  

With more than 40,000 employees already enrolled, Elevate+ is leading a quiet revolution in the way businesses handle pre-tax payroll deductions and compliant benefits planning.

 

How Elevate+ Maximizes Payroll Tax Savings

Let’s do some simple math:

Say your company has 100 W-2 employees.
Elevate+ can save you $600–$800 per employee per year.
That’s $60,000 to $80,000 in annual “payroll tax savings”.
All without any added cost, administration burden, or risk.

Now imagine scaling that over 500, 1,000, or 10,000 employees.
That’s what Elevate+ delivers—real results at scale, without trade-offs.

Not Just Savings—Real Value for Your People

Elevate+ isn’t about cutting corners. It’s about elevating your entire organization by offering meaningful benefits that show employees they matter. In today’s competitive job market, that kind of value creates loyalty, increases performance, and helps companies stand out as employers of choice.

Employees want:

• Simplicity
  
• Flexibility
  
• Support for themselves and their families
  
• A clear reason to stay
  

With pre-tax payroll deductions and the full Elevate+ solution, you can give them all that, without touching your current budget.

Is Elevate+ Right for Your Business?

If your company has 40,000+ enrolled employees and you’re looking for:

• Better tax efficiency
  
• Modern, flexible benefits
  
• No new costs or internal resource strain
  
• A fully compliant Section 125 alternative
  

Then Elevate+ is your next step.

We help businesses elevate both their bottom line and their people, without compromises.

Final Thoughts

Pre-tax payroll deductions are one of the most powerful tools employers can use to maximize payroll tax savings and offer better care to their teams. But they’re just the beginning. With Elevate+, you unlock a smarter, simpler, and fully compliant way to deliver high-impact benefits—without adding costs or complexity.

It’s time to stop wasting tax dollars and start building a benefits program that truly works for everyone.

Book your 10-minute consultation with our Elevate+ benefits experts and discover how much your company could be saving, while giving more to your employees.