Most businesses nowadays aim to provide the finest for their staff members without compromising their margins. However, conventional employee perks can be expensive, inflexible, and have declining value. If you want a more intelligent, sustainable choice, it’s time to investigate the distinction between a Section 125 benefit plan and a conventional benefits package—particularly one optimized via Elevate+.

This blog will explain what each method provides, how they differ, and why more contemporary companies are looking to Section 125 substitutes such as Elevate Benefits to minimize tax waste, enable teams, and streamline compliance, all with no out-of-pocket expense.

What Are Traditional Employee Benefits?

Traditional employee benefits refer to the core offerings most businesses provide, such as:

• Health insurance (group medical plans)
• Vision and dental coverage
• Life insurance and disability
• Paid time off (PTO), sick leave, and holidays
• Retirement contributions (401(k), etc.)
  

Although they are necessary, keeping them has grown rather costly. Often, without better results or employee happiness, employers suffer higher premiums, more complicated benefit administration, and rising medical claims. Many workers are even more ignorant of the full worth of these perks, or cannot afford to utilize them.

What Is a Section 125 Benefit Plan?

A Section 125 benefit plan—also known as a “cafeteria plan“—lets workers use pre-tax payroll deductions for particular benefits, including insurance premiums, dependent care, and medical expenses. This lowers employer payroll tax responsibilities as well as employee taxable income. However, not all Section 125 plans are created equal. Elevate Benefits offers a more powerful alternative through the Elevate+ plan, which goes beyond traditional cafeteria structures by combining:

• Section 125 payroll tax strategies
• A Preventative Care Management Plan (PCMP)
• A Slef Insured Medical Reimbursement Plan (SIMRP)

This integration creates one of the most compliant, benefit-rich, and cost-efficient programs available to employers today.

Side-by-Side Comparison: Traditional Benefits vs. Elevate+ Plan

Feature	Traditional Employee Benefits	Elevate+ Section 125 Benefit Plan
Employer Cost	High and rising	$0 out-of-pocket
Payroll Tax Savings	None	~$600/year per W2
Employee Take-Home Pay	No change	3–4% increase (~$100/month)
Telehealth Access	Often an add-on or limited	$0 copay, 24/7 access
Wellness Tools	Varies by provider	Includes Mayo Clinic tools
Implementation Time	Weeks to months	30–45 days
Claim Savings	Not impacted	Avg.. $1,400 savings in 3 years
Mental Health & Coaching	Rarely included	Included
Family-Wide Coverage	Optional, added cost	Spouse & dependent benefits included
Retention Impact	Minimal	Boosts retention & satisfaction

Why Employers Choose Elevate+

Elevate Benefits created the Elevate+ plan to meet the needs of modern employers—those looking to give more while spending nothing extra. By leveraging a smart combination of Section 125, PCMP, and SIMRP, this plan creates real value on both sides of the equation.

Employer Benefits:

• Save $600 per year per employee on payroll tax
• No upfront cost to implement or maintain
• Rollout in just 30–45 days with full support
• Reduce claims by an average of $1,400 per employee over three years.
• Boost employee retention and performance
• Create an immediate bottom-line impact

More than 40,000 employees are already enrolled in Elevate+, showing real adoption and results at scale.

Why It Works for Employees Too

Unlike some programs that shift savings to the employer at the employee’s expense, Elevate+ is designed to benefit both parties equally.

Employee Benefits:

• 3–4% increase in net take-home pay (~$100/month)
• Access to $0 copay Telehealth services 24/7
• Mental health, coaching, and wellness tools
• Mayo Clinic resources and a personalized health dashboard
• Universal Life, Disability, and Critical Illness coverage
• Spouse and dependent coverage included
• No change to current insurance plans

The result? A benefits experience that feels supportive, simple, and valuable—without requiring trade-offs or additional costs.

Built for Today’s Employers

Companies are under increasing pressure to modernize their benefits without adding complexity or financial strain. Elevate+ offers a turnkey solution:

• Fully compliant with IRS regulations
• Hands-off for HR and finance teams
• Integrates easily with existing payroll providers
• No disruption to existing health insurance

Whether you have 50 or 5,000 employees, the plan scales with your workforce and provides consistent savings and satisfaction.

Why Section 125 Matters More Than Ever

In today’s environment, failing to optimize for tax efficiency is no longer just an oversight—it’s a missed opportunity. The average employer is overpaying thousands in payroll taxes each year. A compliant Section 125 benefit plan like Elevate+ recovers that value and reinvests it back into your business and your people.

Unlike one-size-fits-all options, Elevate+ is built specifically for organizations that want to stand out in the talent market and streamline their operations without financial compromise.

Conclusion: The Smarter Choice Is Clear

When comparing traditional employee benefits to a Section 125 plan that includes PCMP and SIMRP, the difference is clear. Traditional plans are expensive, rigid, and often underwhelming. Elevate+ from Elevate Benefits offers a smarter alternative—one that reduces tax waste, improves retention, and increases employee satisfaction at no additional cost.

If you’re ready to stop overpaying on payroll taxes and start offering more meaningful benefits to your team, it’s time to take a closer look at Elevate+.

Get a free proposal today and see how Elevate Benefits can help your business give more, spend nothing, and do it all—without disruption.