Business involves reducing expenses, particularly taxes while offering good benefits to staff. You may have heard of Section 125 plans assisting in tax saving, but what are they? How do these plans benefit employers to save money? 

In this blog, we will define Section 125 plans in understandable and straightforward terms. We will also provide Elevate+, a special program that applies Section 125 but extends beyond it by giving exclusive health and insurance benefits. Elevate+ saves employers more money and benefits employees more than standard plans.

What Is a Section 125 Plan?

A Section 125 plan, often called a “cafeteria plan,” allows employees to use pre-tax dollars for certain benefits like health insurance, childcare, or medical expenses. This means employees pay less tax on their income, and employers also save money on payroll taxes.

However, the Elevate+ program is not just a regular Section 125 plan. It leverages Section 125 together with two special components:

• Preventative Care Management Plan (PCMP)
• Self Insured Medical Reimbursement Plan (SIMRP)

This combination makes Elevate+ one of the most compliant and benefit-rich programs available for employers and employees alike.

How Does the Elevate+ Plan Work?

Elevate+ is a special program by Elevate Benefits that helps both employers to save money and give better benefits to employees. It uses the Section 125 plan idea but adds more to support health and insurance needs. Here is how it works in a simple way:

• Section 125 Pre-Tax Deductions let employees pay for some benefits before taxes are taken out of their paycheck. This means they take home more money.
• Preventative Care Management Plan (PCMP) gives health services that help employees stay healthy and avoid bigger medical bills later.
• Self Insured Medical Reimbursement Plan (SIMRP) helps pay for special medical costs with tax-free reimbursements.

How Can Employers Save on Taxes with Elevate+?

Employers who provide Elevate+ are able to realize immediate cost savings and long-term advantages, such as:

• Save around $600 annually for each W2 employee. For an organization of 100 employees, this can translate into saving some $60,000 per year.
• No up-front cost to the employer to administer the program.
• Lower healthcare claims by around 5-10% due to improved health management via PCMP.
• Quick and automated implementation, so you begin to save money right away.
• Increase employee performance and retention by providing better benefits and creating a healthy environment.
• Quick bottom-line boost from tax savings and healthier workers.

What Benefits Do Employees Get?

Employees also gain many advantages from the Elevate+ plan:

• A significant increase in net pay. This means an employee can receive approximately $100 more per month in their paycheck without a salary increase.
• $0 copay for telehealth, wellness, virtual care, and mental health services, making healthcare easier and more affordable.
• Access to Mayo Clinic tools and a personal health dashboard to track and improve health.
• Additional benefit options like couple counselling, diet and stress program, addiction recovery support, and Employee Assistance Program 
• Coverage for spouses and dependents, so the whole family benefits.

Why Choose Elevate+ Over Traditional Section 125 Plans?

Traditional Section 125 plans only offer pre-tax benefits but lack the managed care and insurance features that Elevate+ provides. Elevate+ combines Section 125 with PCMP and SIMRP to deliver:

• One of the most compliant programs available in the market.
• Stronger support for employee health and wellness.
• Real financial benefits for employers and employees.
• Easy administration with fast, automated setup.

How to Get Started with Elevate+?

Getting started with Elevate+ is simple and fast. The rollout takes just 30 to 45 days with expert support to help employers and employees understand and use the benefits fully.

If you want to save on taxes, reduce healthcare claims, and offer better benefits with section 125 pre tax deductions, Elevate+ is a strong solution.

Conclusion: Save on Taxes With Section 125 Plan

A Section 125 plan helps employers save on taxes by letting employees pay for some benefits before taxes. But Elevate+ does more than that. It combines Section 125 with a Preventative Care Management Plan and a Self Insured Medical Reimbursement Plan. This means employers save money, employees get more take-home pay, and everyone gets better health support. 

Elevate+ is easy to use, follows all rules, and offers more benefits than a regular Section 125 plan. For employers who want to save on taxes and take good care of their team, Elevate+ is a smart and simple choice.

Take The Right Step Today!

Book your 10-minute consultation to see how Elevate+ can help you save money and give better benefits to your team. It’s quick, easy, and free. Talk with an expert today and get a simple plan that works for your business and your employees.