Section 125 Benefits: How Employers Save & Employees Gain | Trevia Benefits
Discover the key benefits of a Section 125 plan for employers, including payroll tax savings, improved retention, and zero-cost benefit enhancements.
Introduction
In a tight labor market, benefits can make or break your ability to recruit and retain top talent. A Section 125 plan doesn’t just save money — it gives you the flexibility to create a Fortune 500-style benefits package without the Fortune 500 budget.
Key Benefits for Employers
1. Significant Payroll Tax Savings
Every employee enrolled saves the company about $600–$1,800 per year in payroll taxes. For a 200-employee company, that’s well over $100,000 annually.
2. Improved Retention & Recruiting
Employees who receive zero-copay, family-inclusive benefits are more satisfied and less likely to leave. Competitive packages also attract higher-quality candidates.
3. Budget Neutrality
Employers don’t spend more. The plan funds itself through tax savings, so benefits improve without additional costs.
4. Mid-Year Implementation
Unlike traditional insurance renewals, Section 125 plans can be implemented mid-year — no need to wait for open enrollment.
5. Full Compliance & Risk Management
When managed properly, Section 125 plans are IRS-approved and ACA/HIPAA aligned, giving peace of mind in case of an audit.
Key Benefits for Employees
- No reduction in take-home pay
- Access to $0 copay telehealth, counseling, and prescriptions
- Preventative care at no cost
- Coverage extended to families and dependents
- More benefits without higher premiums
Real Impact Example
One of our retail clients added Trevia’s Section 125 program for 80 employees. The result?
- Over $50,000 in annual payroll tax savings
- Free telehealth and prescriptions for all employees and families
- Noticeable drop in turnover within the first year
Conclusion
The benefits of a Section 125 plan go beyond taxes — they transform your workplace culture, boost cash flow, and give employees benefits they’ll actually use.👉 See how much your company could save by booking a 10-minute consultation with Trevia Benefits today.
