If you’re an employer looking to save money on payroll taxes while also giving your team better healthcare benefits, you’ve probably heard about Section 125 plans. But not all Section 125 plans are the same. Some offer more savings. Some include extra health support. Some are easy to roll out.

In this blog, we’ll explain the different types of Section 125 plans in very simple terms. We’ll also help you understand how Elevate+ goes beyond traditional plans by combining three powerful tools, Section 125, Preventative Care Management Plan (PCMP), and Self Insured Medical Reimbursement Plan (SIMRP).

What Is a Section 125 Plan?

A Section 125 plan saves employees money by allowing them to pay for items such as medical expenses, health insurance, and dependent care using pre-tax dollars. The money is deducted from their paycheck before taxes, so they keep more. The employer also saves by not paying as much in payroll taxes. But here’s how Elevate+ is different. It doesn’t just encompass Section 125; it also introduces two mighty programs: a Preventative Care Management Plan (PCMP) and a Self Insured Medical Reimbursement Plan (SIMRP). These form a wiser, more comprehensive benefit plan that facilitates health, savings, and improved care.

Types of Section 125 Plans

Section 125 plans are a smart way for businesses to save money. They let workers use pre-tax money to pay for things like health insurance, doctor bills, and childcare. Since this money is taken out before taxes, employees owe less in taxes. Employers also benefit because they pay less in payroll taxes. But not all Section 125 plans are the same. Let’s look at the different types and section 125 plan benefits:

• Premium Only Plan (POP): A Premium Only Plan is the most basic type of Section 125 plan. It allows employees to pay their health insurance premiums using money that is not taxed. This helps them keep more money in their paycheck. Employers also save because they pay less in taxes. This plan is very easy to set up. But it only helps with insurance premiums. It does not cover other health or family care expenses.

• Flexible Spending Account (FSA): A Flexible Spending Account lets employees put money aside before taxes to pay for common health or childcare costs. This can include visits to the doctor, prescriptions, or daycare. It can save a good amount of money for families. But there is one important rule to remember. If the employee does not use the money by the end of the year, they might lose it. This is also called the use-it-or-lose-it rule.

• Full Cafeteria Plan: This plan offers employees more choice. They can pick the benefits that work best for their needs. The options can include health insurance, FSAs, and more. It works well for bigger companies that want to offer a wide range of benefits. But it can be harder to manage and may not be the best choice for smaller businesses that want something simple.

How Does Elevate+ Help Employers?

When you choose the Elevate+ program, you’re not just giving your employees better benefits; you’re also helping your business save money and run more efficiently. Here’s how it helps employers in simple and clear ways:

• You can save around $600 per W2 employee every year, just through tax savings.
• That’s nearly $60,000 saved annually if you have 100 employees
• There’s no out-of-pocket cost to get started with the program.
• You can reduce health claims by about 5-10% thanks to better care and management tools.
• The program is quick to set up, with a fast rollout time of just 30 to 45 days.
• It helps you keep your employees longer and boost their performance by offering real support and value.
• Best of all, it makes a positive impact on your bottom line right away, helping your business grow stronger.

How Does Elevate+ Help Employees?

The Elevate+ program gives employees real, everyday benefits that improve their health, protect their income, and put more money in their pockets. Here’s what your team can expect:

• Employees can see an increase in their net paycheck, which is around $100.
• They get $0 copay and unlimited access to telemedicine, wellness, and mental health services. 
• They can use trusted Mayo Clinic tools and a personal health dashboard to stay on top of their health.
• The plan includes added protection with addiction recovery support, diet, and stress management program 
• It also offers coverage for spouses and dependents, giving families the full support they need.

Why Elevate+ Is the Right Fit for You?

If you’re an employer who wants to:

• Help your employees financially
• Offer great healthcare benefits
• Save thousands in payroll taxes
• Roll out a solution fast and easily

Then Elevate+ is your answer.

This plan does not stop at Section 125. It uses it smartly with PCMP and SIMRP to give both you and your employees the best of both worlds, savings and care.

Conclusion: Different Section 125 Plans for Different Needs

Choosing the right benefit plan is very important for both employers and employees. Traditional Section 125 plans help save on taxes, but they often do not offer enough support or extra benefits. Elevate+ is different because it uses Section 125 along with a Preventative Care Management Plan (PCMP) and a Self-Insured Medical Reimbursement Plan (SIMRP). This helps employers save on payroll taxes and helps employees take home more money each month. It also gives access to useful health tools and extra coverage for families. Elevate+ makes things simple, affordable, and helpful for everyone in the company.

Ready to Get Started?

Ready to improve employee benefits and save on payroll taxes? Book your 10-minute consultation with Elevate Benefits today. Discover how Elevate+ can bring real savings and support to your team with zero out-of-pocket costs and a fast rollout.