When you think about employee benefits, it’s easy to assume offering more means spending more. But with Elevate+, a modernized benefit solution from Elevate Benefits, you can deliver expanded employee coverage and significant payroll tax savings—without spending a dime or changing your existing health plan. In this guide, we’ll break down how payroll pre-tax deduction work, what’s involved in setting them up, and how Elevate+ goes far beyond the basics by combining a Section 125 benefit plan, a Preventative Care Management Plan (PCMP), and a Self-Insured Medical Reimbursement Plan (SIMRP).
Let’s dive in.
Why Pre-Tax Deductions Matter for Employers
At its core, a payroll pre-tax deduction lets employees use part of their gross wages, before taxes are taken out, to pay for certain qualified benefits. This reduces their taxable income and increases their net take-home pay.
But what’s often overlooked is the employer advantage. By lowering each employee’s taxable income, you also reduce the employer’s share of payroll taxes, including FICA and FUTA. That’s real, recurring savings.
Here’s how the numbers work out with Elevate+:
- Save $600/year per W2 employee
- That’s $60,000/year for every 100 employees
- All at zero cost to the business
So the question isn’t whether to implement pre-tax deductions—it’s how to do it the smart way.
Beyond Section 125: Elevate+ Is Not Just Another Cafeteria Plan
Many companies already use a Section 125 benefit plan (also called a cafeteria plan) to enable pre-tax deductions. But Elevate+ takes it a step further by combining three components into one automated, fully managed, and compliant solution:
What’s Included in Elevate+:
- Section 125: Enables pre-tax deductions for qualified benefits
- PCMP (Preventative Care Management Plan): Delivers ongoing, proactive health support with no copays
- SIMRP (Self-Insured Medical Reimbursement Plan): Offers additional family-wide coverage with zero out-of-pocket cost
This trio works together to maximize tax savings and deliver rich employee benefits, without increasing employer spending or disrupting your current benefits provider.
Setting Up Payroll Pre Tax Deductions: What to Know
If you’re an HR manager, CFO, or business owner exploring pre-tax deductions, you may wonder: What does implementation look like? Is it complex? What about compliance?
Here’s what to expect with Elevate+:
- Streamlined Implementation
- Setup completed in 30–45 days
- Full administrative support provided
- No disruption to your current payroll or benefits
- No Upfront Cost or Fees
- Elevate+ is cost-free for both the employer and employees
- It’s funded through tax savings and structured reimbursements
- There are no out-of-pocket expenses or hidden charges
- Full Legal Compliance
- Elevate+ is IRS- and DOL-compliant
- Every component is administered by licensed third-party professionals
- Includes all required documentation, nondiscrimination testing, and reporting
By choosing Elevate+, you’re not just setting up basic payroll pre tax deductions—you’re implementing one of the most compliant and benefit-rich programs available today.
What Employees Get from Elevate+
When employees hear “pre-tax deduction,” they may worry about a smaller paycheck. But Elevate+ is specifically designed to increase their net pay, not shrink it.
Employee Highlights Include:
- 3–4% boost in net pay (That’s up to $100/month!)
- $0 copay 24/7 Telehealth access
- Integrated mental health and counseling support
- Tools from Mayo Clinic for wellness, fitness, and prevention
- Critical illness, disability, and life coverage—for employees, spouses, and dependents
It’s no wonder more than 30,000 employees are already enrolled in Elevate+. This program delivers real value that employees can see and feel, helping improve morale, loyalty, and retention across the board.
Why Employers Choose Elevate+
Here’s the simple truth: Elevate+ doesn’t just check the compliance box—it moves the needle on your bottom line.
With Elevate+, Employers Enjoy:
- $600 per W2 in tax savings
- Zero disruption to current benefits
- A fully automated, turnkey rollout
- Fewer claims and less pressure on health insurance
- Stronger retention and reduced absenteeism
- A clear ROI in just weeks
You get to give more without spending more. That’s what modern benefits should look like.
The Hidden Cost of Doing Nothing
If you’re not leveraging a pre-tax structure like Elevate+, you’re leaving thousands (maybe millions) of dollars on the table every year.
Every month that passes without this structure:
- Increases your payroll tax burden
- Misses the chance to elevate employee wellbeing
- Reduces your edge in attracting and retaining talent
By switching to Elevate+, you stop the financial leakage—without adding cost, admin burden, or legal risk.
Real-World Example
A manufacturing firm with 400 W2 employees implemented Elevate+. Within 60 days, here were the results:
- Employer tax savings: $240,000/year
- Employee pay increase: ~$100/month each
- Employee adoption rate: 97%
- Claim reduction: 15% drop in health plan utilization in year one
- Best of all? The company didn’t pay a dime to implement it.
Designed for Scale. Built for Compliance.
Elevate+ was created for growing companies that want to do right by their people and their financials. This solution is ideal for employers with 40,000 to over 70,000 enrolled employees. It helps modernize benefits while keeping existing systems in place.
It’s not just a plan. It’s a performance multiplier.
Let’s Recap the Big Wins
If you’re thinking about payroll pre tax deductions, Elevate+ offers a fast, easy way to maximize their value while avoiding the hassle. Here’s what sets it apart:
Leverages Section 125 — but adds more with PCMP + SIMRP
Saves $600 per W2 without out-of-pocket spend
Gives employees $0 copay care and better coverage
Compliant, automated, and fast to implement
Already trusted by 30,000+ employees nationwide
Frequently Asked Questions
How much can my company save with Elevate+?
On average, employers save about $600 per W2 employee annually, or $60,000 per 100 employees. These savings come from payroll tax reductions and lower healthcare claim costs.
Will this affect employee take-home pay?
Not at all. In fact, many employees see a 3–4% increase in their net paycheck, with no out-of-pocket contributions required for the benefits provided.
How long does implementation take?
The Elevate+ rollout is fast and automated, typically taking just 30 to 45 days from consultation to full integration.
Is Elevate+ compliant with IRS and DOL rules?
Absolutely. Elevate+ is built around a compliant Section 125 framework and includes managed PCMP and SIMRP structures. Elevate Benefits handles all the compliance work for you.
Ready to Elevate Your Benefits?
Whether you’re a CFO looking to optimize taxes or an HR lead trying to improve retention, Elevate+ gives you the tools to do both, without compromise.
Book your 10-minute consultation now and learn how Elevate+ results in reduced payroll taxes.
Reference:
https://www.irs.gov/pub/irs-pdf/p969.pdf