If your company offers a Section 125 plan, you may assume everything is in place. But the IRS keeps updating its guidelines, and not all plans stay compliant over time. A non-compliant plan can lead to tax penalties and unhappy employees. That’s why it’s important to check if your current plan meets the latest IRS tax code section 125 rules.

This blog will help you understand how a modern benefits plan like Elevate+ works. It does more than just include Section 125. It combines it with extra support systems like Preventative Care Management Plan (PCMP) and Self Insured Medical Reimbursement Plan (SIMRP). This creates one of the most compliant and benefit-rich plans available today.

What Is a Section 125 Plan?

A Section 125 plan lets employees pay for certain benefits with pre-tax dollars. This helps reduce their taxable income. It can include things like:

• Health insurance premiums
• Vision and dental coverage
• Dependent care assistance
• Some out-of-pocket medical costs

But just offering a Section 125 plan isn’t enough anymore. To stay compliant with IRS tax code section 125, employers need to follow strict rules around how the plan is managed, documented, and reported.

What Makes Elevate+ Different?

Elevate+ is not your typical Section 125 plan. It leverages Section 125 together with a fully managed PCMP and SIMRP. This means your employees get more support, and your business enjoys more savings.

The Elevate+ includes the following things:

• Section 125 features to reduce employee taxable income
• Preventative Care Management Plan (PCMP) for regular health checkups, wellness, and chronic care
• Self Insured Medical Reimbursement Plan (SIMRP) to cover extra medical expenses

All of this is wrapped into one simple, automated package, designed to keep you fully IRS compliant while maximizing value. 

IRS Compliance: Why It’s Important?

The IRS keeps updating the rules for Section 125 plans, so it is important for employers to stay current. Your plan must have clear written documents, and it should be fair to all employees, not just the higher paid ones. It should only include benefits that are allowed under IRS rules. Also, all the tax and payroll details must be handled correctly and on time.

This is where Elevate+ really helps. It takes care of all the complex parts for you. The plan is built to follow every rule closely. You do not have to worry about missing anything or making costly mistakes. With Elevate+, your plan stays compliant, your team gets more benefits, and your company saves money. It is a smart and simple way to stay on track.

Employer Benefits with Elevate+

Elevate+ is not just about staying compliant. It also helps your business save money and support your team better. The savings are real and the process is simple. Here is what you can expect:

• Save about 600 dollars per W2 employee every year
• For 100 employees, that means around 60,000 dollars saved yearly
• No extra cost to the employer
• Fewer health claims, with 5-10% reduction in healthcare cost 
• Fast and smooth setup
• Helps you keep your employees and boost their performance
• Makes an immediate and clear difference to your bottom line

Employee Benefits with Elevate+

With Elevate+, employees get more than just tax savings. They see real improvements in their pay and health benefits. Here is what they receive:

• Zero copay with 24/7 telemedicine, mental health support, and virtual care
• Access to tools and resources from Mayo Clinic, along with a diet and stress program 
• Extra benefits include couple counseling, addiction recovery support, and health vital facial scan tools
• Coverage is also available for spouses and dependents.

Why Elevate+ Is One of the Most Compliant Plans?

Many Section 125 plans were built years ago and haven’t evolved. Elevate+ is different. It’s built with today’s rules in mind. It keeps track of compliance details for you and gives your team everything they need.

It includes the following things:

• Proper plan documents
• Fully managed services
• Automated onboarding
• Employee communication tools
• Ongoing support to meet IRS updates

Final Thoughts: Stay Compliant With IRS Regulations

Your existing Section 125 plan may be archaic and not conform to the most up-to-date IRS regulations. This can result in errors in reporting, lost tax savings, and even penalties. Most older plans were designed years ago and have not been updated to align with today’s compliance requirements. Elevate+ is a superior alternative. It encompasses the essential advantages of Section 125 and combines these with a Preventive Care Management Plan and a Self Insured Medical Reimbursement Plan. 

Together, these form one of the most benefit-packed and fully compliant programs. It’s an intelligent upgrade that benefits both your employees and your company.

Know More About IRS Regulations Now!

Not sure if your plan follows the latest IRS rules? Talk to an expert at Elevate Benefits. Book a quick 10 minute call and see how Elevate+ can help you stay compliant and give real value to your team.