Why Should Every Business Offer Section 125 Plan Benefits?

When businesses are looking to offer the best benefits to employees without breaking the bank, the Section 125 plan often becomes a top choice. But what if you could save on payroll taxes while offering a comprehensive, employee-friendly benefits plan? That’s exactly what Life Strong Care’s Life Flex plan does.

By integrating Section 125 with a Preventative Care Management Plan (PCMP) and a Self Insured Medical Reimbursement Plan (SIMRP), Life Flex provides businesses with a cost-free, fully compliant solution that delivers real savings — both for employers and employees.

Let’s explore how offering a Section 125 plan benefits your business.

What Is a Section 125 Plan?

A Section 125 plan, also called a cafeteria plan, is a tax-advantaged benefit program that allows employees to pay for qualified benefits (like health plan premiums and out-of-pocket medical costs) using pre-tax dollars. This reduces the employee’s taxable income and helps businesses reduce payroll taxes as well.

However, the typical Section 125 plan may lack comprehensive health engagement benefits or create administrative complexity. That's where Life Flex stands out.

How Life Flex Leverages Section 125 to Deliver Real Savings?

While Life Flex includes a Section 125 framework, it goes beyond the traditional approach by integrating two additional components:

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

Here’s how the savings work:

• Employee contributions are pre-tax, lowering their taxable income and reducing their tax burden.
  
  
• This helps businesses reduce FICA (Social Security and Medicare) taxes, contributing to savings on payroll.
  
  
• On average, businesses can save $600–$800 per employee annually from payroll tax reductions.
  
  

For example, a company with 100 employees could save $60,000–$80,000 annually by implementing Life Flex, with zero out-of-pocket cost for employers.

Why Life Flex Is Different From a Traditional Cafeteria Plan?

While many cafeteria plans use the Section 125 structure, Life Flex leverages this framework and enhances it with:

• Comprehensive preventative care tools
  
  
• Self-insured medical reimbursements
  
  

This makes Life Flex:

• Fully compliant with IRS regulations
  
  
• Automated and simple to implement
  
  
• Cost-free for employers and employees
  
  

Unlike traditional cafeteria plans, Life Flex combines essential benefits into a single, seamless solution that reduces costs and complexity while improving employee satisfaction.

Key Benefits for Employers

Adopting Life Flex can unlock significant financial and operational advantages for employers:

Payroll Tax Savings

• Save $600–$800 per W2 employee annually
  
  
• For 100 employees, this could amount to $60,000–$80,000 in savings
  
  

Zero Out-of-Pocket Costs

• No premiums, no unexpected invoices, no hassle
  
  

Simplified Implementation

• A less than 50-days rollout, fully automated and managed
  
  
• Quick and seamless integration into existing payroll systems
  
  

Improved Employee Health Engagement

• Preventative care tools help reduce claims by $1,400 over three years per employee
  
  
• Increased employee wellness and productivity
  
  

Boosted Retention and Performance

• Employees feel supported, leading to stronger retention and improved workplace performance
  
  

Immediate Return on Investment (ROI)

• Savings begin immediately once the plan is live

Key Benefits for Employees

Life Flex is designed to benefit employees by offering valuable health and wellness options, with no changes to take-home pay.

 

• No Change in Take-Home Pay

 

 

• Employee contributions are pre-tax, so benefits are available without reducing net pay
  
  

 

• $0 Copay for 24/7 Telehealth

 

 

• Access to doctors, nurses, and health coaches at any time
  
  

 

• Comprehensive Mental Health and Counseling Support

 

 

• Assistance with anxiety, addiction, depression, and more
  
  

 

• Mayo Clinic Wellness Tools

 

 

• Personalized health dashboards and preventative resources backed by trusted medical research
  
  

 

• Enhanced Life and Critical Illness Coverage

 

 

• Universal Life, Disability, and Critical Illness coverage options
  
  
• Includes spouse and dependent coverage
  
  

“More than 30,000 employees are already enrolled in Life Flex.”

Why Life Flex Is the Smarter Option?

Life Flex isn’t just another Cafeteria health plan. It’s an integrated benefits platform that provides businesses with real financial savings while offering employees meaningful health and wellness coverage.

What makes Life Flex stand out?

• Integrated solution – Combines Section 125, PCMP, and SIMRP for a comprehensive benefits experience
  
  
• No additional cost or complexity – Simple to implement with zero out-of-pocket costs
  
  
• Compliant and automated – Fully compliant and easy to integrate with minimal administrative work
  
  
• Immediate financial and cultural ROI – Boosts employee morale and loyalty while delivering savings
  
  

Best of all, Life Flex works for businesses of all sizes.

Real Impact. Zero Compromise.

At Life Strong Care, we believe in building healthier, more loyal teams without the need for additional spending. Life Flex allows businesses to provide real, impactful benefits while also reducing payroll taxes and offering employees meaningful health tools.

This isn't a traditional Section 125 plan; it's a next-generation benefits platform that:

• Reduces payroll taxes for employers
  
  
• Improves employee health and wellness
  
  
• Supports families and dependents
  
  
• Increases employee retention and morale
  
  
• Requires no additional cost or complexity
  
  

Life Flex is designed to create a culture of care and support, helping companies thrive.

Ready to See How Much You Could Save?

Are you ready to explore the benefits and savings your company could unlock with Life Flex?

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Find out how much your business could save with a customized solution.

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Our team can help you implement a fully compliant, fully managed plan in as little as 50 days.

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