Section 125 of the Internal Revenue Code allows employers to offer a "cafeteria plan" — enabling employees to receive a portion of their compensation as tax-free benefits instead of taxable salary. The result: real savings for both the employer and every employee.
From feasibility study to first payroll — most organizations are fully operational within 30 days.
We analyze your current payroll structure, employee headcount, and benefits offerings to calculate your exact savings potential under Section 125. This complimentary audit takes 48 hours and produces a board-ready report with projected annual tax savings for your organization.
Our legal and compliance team drafts your Section 125 Plan Document — the IRS-required written document that defines eligible benefits, election procedures, and plan year details. We handle all non-discrimination testing protocols (eligibility, benefits, and key employee concentration tests) to ensure full IRS compliance from day one.
We integrate the Section 125 pre-tax deductions directly into your existing payroll system — whether that's ADP, Gusto, Paychex, or any other provider. Pre-tax elections are configured so employee contributions flow automatically each pay period with zero manual intervention from your HR team.
We provide ready-to-distribute enrollment materials and Summary Plan Descriptions (SPDs) for your workforce. Employees select their pre-tax benefit elections during an open enrollment window. Our team can host virtual or in-person sessions to walk employees through their options and maximize participation rates.
From the very first payroll cycle, your organization begins capturing tax savings. We handle ongoing plan administration including annual non-discrimination testing, plan document amendments, regulatory updates, and year-end reporting — so you can focus on running your business while the savings compound every pay period.
Real results from organizations that implemented Section 125 with The Tax-Free Raise.