How Can Employers Save Money with Section 125 Plans?

When most employers hear "Section 125 plans," they think of cafeteria plans that let employees pay for certain benefits with pre-tax dollars. But what if we told you there’s a smarter, more comprehensive option that not only includes Section 125 tax savings but also saves your company thousands every year, without spending a single extra dime?

That’s exactly what Life Flex from Life Strong Care delivers.

This isn’t your standard Section 125 plan. Life Flex combines a Section 125 tax savings strategy with a Preventive Care Management Plan (PCMP) and a Specialized Insurance Medical Reimbursement Plan (SIMRP) — creating one of the most compliant and benefit-rich programs available today.

Let’s break down exactly how employers can save money and build a healthier, more loyal team with this unique offering.

What is Life Flex?

Life Flex is a modern benefit solution from Life Strong Care. It’s built for employers who want to support their workforce without adding costs or administrative headaches.

The plan integrates:

Section 125: Allows pre-tax payroll deductions, resulting in payroll tax savings.

PCMP: Preventive care services, including wellness and telehealth.

SIMRP: Provides tax-free reimbursements for supplemental insurance plans.

This fully managed, automated solution is easy to roll out in just 30–45 days and is cost-free to both the employer and the employee.

How Section 125 Tax Savings Work in Life Flex

Section 125 allows employees to pay for eligible benefits with pre-tax dollars. When this happens:

Employers don’t pay payroll taxes (like FICA) on the portion of pre-tax income.

Employees save money by reducing their taxable income, without lowering their actual paycheck.

By combining this tax-saving structure with PCMP and SIMRP, Life Flex delivers significantly more than a traditional cafeteria plan.

How Much Can Employers Really Save?

Let’s look at the numbers.

With Life Flex, employers typically save $600–800 per W2 employee annually. That means:

25 employees = $17,000–$20,000/year in savings

100 employees = $60,000–$80,000/year

250 employees = $150,000–$200,000/year

And remember — these savings come with no out-of-pocket cost to implement.

Employer Benefits of the Life Flex Plan

Here’s what makes Life Flex stand out from other Section 125 programs:

1. Substantial Payroll Tax Savings

Save around $680 per employee per year
Immediate impact on your bottom line

2. No Cost to You

Zero implementation fees
No new line items in your budget

3. Fast, Automated Rollout

Takes just 30–45 days
Fully managed from setup to support

4. Reduced Healthcare Claims

On average, employers see $1,400 in claims reduction per employee over 3 years
Employees get better access to preventive care, which cuts down on costly interventions

5. Boosts Team Morale & Loyalty

Show your team you care with real benefits
Improves retention and performance — employees are more likely to stay when they feel supported

What Employees Get from Life Flex

While employers benefit from tax savings, employees don’t see a reduction in take-home pay. In fact, they get more support than ever before:

$0 copay 24/7 Telehealth with doctors, nurses, and wellness coaches

Access to mental health support, addiction counseling, and family services

Mayo Clinic wellness tools and personal health dashboards

Coverage for Universal Life, Disability, and Critical Illness

Spouse and dependent enhancements included

More than 30,000 employees are already enrolled in Life Flex — and the number keeps growing.

What Makes Life Flex Different from Other Section 125 Plans?

It’s not just about tax savings.

While most cafeteria plans focus on offering pre-tax options for a narrow list of benefits, Life Flex creates a full-circle support system for employees that also helps employers reduce claims, save money, and avoid complexity.

Here’s how Life Flex is different:

Combines Section 125 + PCMP + SIMRP in one package

Fully compliant with IRS and Department of Labor rules

No cost and minimal admin effort required

Delivers immediate ROI with sustained long-term benefits

Who Is Life Flex Right For?

Life Flex is ideal for businesses with 25 or more W2 employees looking to:

Reduce healthcare costs

Improve employee benefits without increasing expenses

Boost retention and attract top talent

Take a proactive approach to employee wellness

Whether you’re in healthcare, logistics, hospitality, retail, or education, if you're managing a team, Life Flex can help you save.

Why Employers Trust Life Strong Care

At Life Strong Care, we believe strong teams start with care. That’s why we built Life Flex — a cost-free solution that:

Strengthens team culture

Improves employee loyalty

Supports family-first workplaces

Delivers real savings and better outcomes

We know benefit decisions are tough, especially when budgets are tight. Life Flex makes it easier to offer meaningful benefits, reduce turnover, and grow stronger together.

Ready to See the Savings?

The numbers speak for themselves.

$680 in savings per W2. No cost. No catch. Just better benefits.

If you want to cut costs while supporting your team, now’s the time to act.

Book your 10-minute consultation today or get a free proposal tailored to your company size and goals.