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IRS Code Section 125: Are You Missing Out on Crucial Tax Breaks?

Many employers hear about IRS code Section 125 and immediately assume it’s either too technical, too risky, or only useful for large corporations. That assumption quietly costs businesses money every year. The truth is, IRS code Section 125 plan can unlock meaningful savings and stronger employee benefits if it’s structured the right way.

That’s where Elevate+ changes the conversation. Rather than offering a standalone or outdated approach, Elevate+ leverages IRS code Section 125 together with a fully managed Preventative Care Management Plan (PCMP) and a Self-Insured Medical Reimbursement Plan (SIMRP). The result is a modern, compliant, and benefit-rich solution designed specifically for employers who want simplicity, savings, and better care for their people.

Let’s walk through what employers often miss, why traditional approaches fall short, and how Elevate+ turns Section 125 into a true advantage instead of a headache.

What IRS Code Section 125 Really Allows Employers to Do

At its core, IRS code Section 125 outlines how employers can structure benefit programs that give employees access to certain benefits through payroll without increasing employer costs. Historically, this was done through cafeteria-style plans that focused heavily on payroll mechanics.

But that’s only part of the picture.

What many employers miss is that Section 125 plan doesn’t need to stand alone. When it’s paired with preventative care and reimbursement strategies, it becomes the foundation for a much broader benefits system, one that improves employee health, stabilizes costs, and strengthens retention.

Elevate+ doesn’t replace your current benefits. It runs alongside them, quietly enhancing value without disruption.

Why Traditional Section 125 Setups Leave Value on the Table

Many businesses technically “have” a Section 125 structure but still miss major opportunities. Why?

Because traditional setups usually:

  • Focus only on payroll mechanics
  • Offer limited engagement from employees
  • Provide no ongoing care or prevention tools
  • Create administrative work for HR
  • Fail to support families
  • Deliver little cultural impact

That’s not a failure of Section 125 itself, it’s a failure of implementation.

Elevate+ takes a different approach by building around real employee needs, not just compliance.

How Elevate+ Uses Section 125 Differently

Elevate+ includes Section 125 as part of a broader, fully managed system. It leverages Section 125 together with:

Preventative Care Management Plan (PCMP)

Self-Insured Medical Reimbursement Plan (SIMRP)

This combination creates one of the most compliant and benefit-rich programs available today, without adding cost or complexity for employers.

Everything is automated. Everything is managed. Employers don’t handle documents, testing, reimbursements, or compliance monitoring.

Employer Benefits with Elevate+ 

Elevate+ is designed for organizations with 40,000–70,000+ enrolled employees, but its value is just as clear for mid-sized and growing employers.

What employers gain:

~$600 per W-2 employee per year in savings

No out-of-pocket cost

Reduced healthcare claims (avg. $1,400 over 3 years)

Fast, automated rollout in 30–45 days

Improved retention and performance

Immediate bottom-line impact

There’s no budget reshuffling. No premium increases. No disruption to existing plans.

Employee Benefits That Actually Get Used

Where Elevate+ truly stands out is the employee experience. These are benefits people use, not ones that sit on a brochure.

Employees receive:

3–4% net paycheck increase (~$100/month)

$0 copay 24/7 Telemedicine & Virtual Care

Mental health & counseling support

Mayo Clinic wellness tools & dashboards

Universal Life, Disability & Critical Illness coverage

Spouse & dependent coverage included

Every benefit applies to the employee and their family. No copays. No confusing claims. No barriers to care.

When employees feel supported at home and at work, engagement improves naturally.

Why Preventative Care Is the Missing Link

Most benefit plans react to health issues after they become expensive. Elevate+ flips that model.

Through its Preventative Care Management Plan, employees gain access to:

Ongoing wellness guidance

Mental health and emotional support

Digital health insights

Early risk identification

Family-wide care access

This proactive approach leads to fewer claims, lower long-term costs, and healthier teams, without adding pressure to HR or payroll teams.

Compliance Without the Stress

One of the biggest fears employers have around Section 125 is compliance. And rightly so, mistakes can be costly.

Elevate+ removes that risk entirely:

All plan documentation is handled

Compliance monitoring is automated

Reporting is maintained

Audit readiness is built in

Employers stay protected without needing in-house expertise.

Who Benefits Most from Elevate+

Elevate+ works across industries and organization sizes, especially for employers who:

Want stronger retention without higher payroll

Need family-first benefits

Lack large HR teams

Want predictable healthcare costs

Care about culture, not just compliance

More than 30,000 employees are already enrolled, experiencing better care and higher satisfaction without added cost.

Why This Matters More Than Ever

Workforces are changing. Expectations are higher. Employees want real benefits, not buzzwords.

Programs built around Internal Revenue Code Section 125 can either stay stuck in outdated structures or evolve into something meaningful. Elevate+ represents that evolution.

It helps employers reduce waste, strengthen teams, and offer care that extends beyond the workplace, without cutting corners or increasing spend.

Final Thoughts: Don’t Let Internal Revenue Code Section 125 Go Underused

Many companies technically comply with Internal Revenue Code Section 125 but still miss out on its full potential. Elevate+ ensures employers don’t just comply, they benefit.

By integrating Section 125 with preventative care and reimbursement support, Elevate+ turns a misunderstood regulation into a strategic advantage.

If you’re wondering whether you’re missing out, the answer is simple:

If you’re not using Elevate+, you probably are.

Ready to Explore Elevate+?

If you want to reduce costs, improve employee well-being, and simplify compliance, without spending more, Elevate+ is designed for you.

Book your 10-minute consultation

Get a free proposal today and talk with an expert!

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