Organizations in the contemporary business rivalry seek to establish new ways of reducing costs and increasing employee satisfaction. One way is to make use of the IRS Section 125 plan, also referred to as a cafeteria plan. The IRS Section 125 plan provides employees with an opportunity to spend their benefits outlays using untaxed dollars and thereby assist both organizations and individuals in realizing substantial tax savings.
At Elevate Benefits, we’ve carried the traditional IRS Section 125 plan a step further by adding a Preventative Care Management Plan (PCMP) and a Self-Insured Medical Reimbursement Plan (SIMRP) to our proprietary Elevate+ program. The whole compliance package provides incredible value for all parties involved because it necessitates no expenditure by employers or employees.
Understanding the IRS Section 125 Plan
The IRS Section 125 plan allows employees to exchange a share of their income that is taxed with non-taxable benefits. The benefits might be health premiums, medical costs, or dependent care. Employees pay federal income and Social Security taxes, as well as payroll taxes that employers save.
But then there is the drawback with conventional Section 125 payroll arrangements, namely a failure to offer extensive benefits or achieve full savings potential due to the lack of effective payroll integration.
Introducing Elevate+: A New Take on Section 125
The Elevate+ program is not merely an IRS Section 125 plan; it’s a complete, managed, automated program that brings the best of Section 125, PCMP, and SIMRP together. By bringing these elements together, the program maximizes compliance and provides a rich set of benefits to employees without adding costs to employers.
Key Components of Elevate+:
- Section 125: Allows pre-tax contributions for eligible benefits, reducing taxable income.
- PCMP: Provides preventive care services, promoting employee wellness and reducing long-term healthcare costs.
- SIMRP: Provides reimbursements for certain medical costs, increasing employee coverage without extra premiums.
In brief, Elevate+ increases the benefits Section 125 plans provide by integrating them into a more comprehensive and effective framework.
Employer Benefits: Significant Tax Savings and More
Implementing the Elevate+ program offers employers substantial financial advantages:
- Average Savings: Organizations save $600 per worker annually, which amounts to $60,000 for each business group comprising 100 employees.
- No Out-of-Pocket Costs: Because this program generates financial savings for businesses, employers keep their budgets stable and do not need any new financial input.
- Reduced Healthcare Claims: Each employer usually sees their medical claims drop by $1,400 during the course of three years.
- Quick Implementation: The program installation requires only between 30 and 45 days, which minimizes disruption to existing operations.
- Enhanced Retention and Productivity: Employees demonstrate enhanced satisfaction through better benefits, which results in decreased employee departure rates.
These benefits render Elevate+ an appealing choice for companies that want to maximize their Section 125 payroll strategy.
Employee Benefits: Greater Coverage Without Decreased Take-Home Pay
Employees who are part of the Elevate+ program benefit from a package of benefits that enhance their well-being and financial protection:
- Increased Net Pay: Workers see a 3–4% boost in their net pay, translating to about $100 more each month.
- $0 Copay Telehealth Services: Visits with doctors, nurses, and wellness coaches at no copayment.
- Mental Health Support: Full services covering mental health, addiction, and counseling requirements.
- Mayo Clinic Tools: Access to wellness tools and health dashboards from the Mayo Clinic.
- Expanded Coverage: Universal Life, Disability, and Critical Illness coverage, including spouse and dependent upgrades.
Notably, these advantages are given without any decrease in take-home pay, as Elevate+ is a win-win for employees and the company alike.
Why Choose Elevate+?
With more than 70,000 employees currently enrolled, Elevate+ has shown its worth in the marketplace. Here’s why companies are looking to this innovative solution:
- Comprehensive Integration: Merges IRS Section 125 plan, PCMP, and SIMRP into one integrated program.
- Full Compliance: Built to satisfy all IRS, HIPAA, and ACA requirements, providing employers with peace of mind.
- Automated Onboarding: Streamlines the implementation process, minimizing administrative hassles.
- No Disruption: Integrates with current benefits plans, with no need for changes to current offerings.
- Employee Satisfaction: Adds value to the overall benefits package, leading to improved morale and higher retention.
By implementing Elevate+, employers can bring their benefits offerings into the modern era without adding costs or complexity.
Getting Started with Elevate+
Implementing the Elevate+ program is a straightforward process:
- Discovery Call: We start with a short consultation to discover your company’s structure and requirements.
- Anonymous Census Review: An anonymous review of employee information to determine eligibility and possible savings.
- Savings Proposal: A data-driven, in-depth proposal providing the financial advantage for your business.
- Seamless Integration: Our team coordinates all elements of implementation, and the transition will be seamless.
- Go Live: In 30–45 days, your business begins saving, and your workers start enjoying their new benefits.
Our dedication to compliance and ease means Elevate+ increases your benefits offering without creating administrative weight.
Conclusion
The Section 125 plan provided by the IRS provides a useful benefit for employees and employers alike to save on taxes. Yet, with the inclusion of this plan with PCMP and SIMRP via the Elevate+ program, companies can avail themselves of even more advantages. With large tax savings, improved employee coverage, and effortless implementation, Elevate+ proves to be an excellent option within the domain of Section 125 payroll solutions.
For more information on how Elevate+ can revolutionize your benefits plans and bring valuable savings, check out Elevate Benefits today.