A federally compliant Section 125 payroll optimization program reduces your FICA tax liability by roughly $500 per employee per year, upgrades your team's benefits package, and leaves every employee's take-home pay the same or higher. You pay nothing extra. Neither do they.
The Program Nobody Told You About
It is a Section 125 pre-tax payroll structure that redirects money you are already sending to the IRS back into your business and your employees' pockets, without changing your existing benefits and without costing anyone a dollar more than they are already spending.
When employees enroll, their program premium is deducted from their paycheck before taxes are calculated. That pre-tax deduction lowers each employee's taxable income, which lowers the FICA payroll taxes you are required to match as an employer. The savings happen automatically, every single pay period, without any change to your existing payroll software or benefits structure.
Enrollment instantly unlocks telemedicine with zero copay, chronic care management, six counseling sessions per family member per year, addiction recovery support, Mayo Clinic mental health and nutrition programs, legal services, a vitals facial scanning app, and more. These benefits go live the moment enrollment is complete, and they do not replace or change a single benefit your employees already have.
The tax savings generated by the pre-tax deduction are enough to fund an Indexed Universal Life policy for each participating employee, typically $150 to $200 per month, or $1,800 to $2,400 per year in premiums, without reducing their take-home pay by a single dollar. They build personal wealth inside a tax-advantaged life insurance policy that belongs to them regardless of where they work.
This is not a replacement for your existing health plan, 401(k), or any current benefit. It layers on top of what you already offer. Employees keep every benefit they have today and gain access to the new suite at no additional cost to them. You keep your current payroll provider, your current benefits vendors, and your current administrative routine. Implementation is handled by a dedicated advisor and goes live without operational disruption.
The Numbers Don't Lie
These are real figures from a real paycheck comparison. The employee's gross pay does not change. The employer's direct costs do not increase. What changes is where the money goes, and who keeps more of it.
The employee's take-home pay increased by $4.25. The employer's FICA contribution dropped by over $293 for this employee, this pay period, without spending a dollar more. Multiplied across 10, 25, or 50 employees, that is real money returning to your bottom line every month.
What This Means for Your Business
The payroll tax reduction is the headline. But the business owners who implement this program consistently point to four outcomes that matter just as much over the long term.
You save on FICA contributions every pay period due to employees' pre-tax deductions. That reduction goes directly to your bottom line, not to a vendor, not to overhead.
You give employees access to a premium benefits package, including telemedicine, mental health support, and life insurance, without writing a single additional check.
Healthy employees show up. Employees who have access to chronic care management, mental health support, and wellness programs call in sick less and produce more.
Offering benefits your competitors are not offering is a recruitment advantage you can use immediately. Better retention, better morale, and a stronger reason for top candidates to choose you.
What Your Employees Actually Receive
This is not a discount card or a wellness newsletter. These are real, substantive benefits with real dollar value that your employees and their families can use immediately upon enrollment.
24/7 access to doctors, urgent care physicians, mental health providers, and specialists with zero copay. Emergency-trained providers who can diagnose and treat any medical issue or injury, plus care coordination to local services.
A health engagement program focused on each employee's top concerns, including diabetes and cardiovascular care. Personalized communications, reminders, and resources delivered on their schedule.
Six 50-minute counseling sessions per family member per year for stress, anxiety, depression, grief, marital concerns, and more. Plus one 60-minute legal consultation per legal matter with a licensed attorney.
Employees take their vitals anytime, anywhere using the Anura app, which detects blood flow under the skin to measure heart rate, blood pressure, BMI, stress level, cardiovascular risk, blood glucose risk analysis, and more, in 30 seconds.
A full-year interactive recovery program with 500+ searchable videos, goal-setting tools, a progress tracker, personalized action plans, group meeting finder, and connections to higher levels of care across all aspects of substance recovery.
U.S. News top-ranked diet program. An app and web-based program with videos, lectures, tips, mindfulness tools, and a training and maintenance phase with full tracking features, powered by Mayo Clinic's evidence-based methodology.
The Resilient Option program for mental wellness plus Mayo Clinic's 12 Habits of Highly Healthy People. Includes a personal well-being assistant that guides employees through education, activities, and motivation at their own pace.
An 8-hour online relationship program available 24/7/365, delivered privately in the home. Includes four virtual sessions with a program coach. Immediately reduces stress and strengthens the bond in romantic relationships.
Access to financial planning, retirement planning, wills, and trusts guidance, plus legal services. Each employee uses their tax savings, typically $150 to $200 per month, to fund a personal IUL policy without reducing their take-home pay.
From First Conversation to Go Live
Implementation is handled for you. Your team at FLHG Management Group manages the entire process from intake to go-live so you never have to figure out compliance, paperwork, or payroll configuration on your own.
Demetrice collects five pieces of basic business information: your number of employees, your payroll size, your current benefits, and your goals. From that data, a dedicated advisor builds a savings report that shows exactly how much your specific business will save in FICA payroll taxes, down to the dollar, before you make any decision or sign anything.
Once you agree to move forward, your advisor manages the data authorization, master service agreement, client setup form, Section 125 plan documents, payroll code configuration, and a kick-off call with your payroll specialist. Employees complete enrollment forms and select their benefits. You are never left navigating the paperwork alone, and a mock payroll run is completed before anything goes live.
On the first pay period after go-live, payroll deductions are reconfigured, FICA liabilities drop, employee wellness benefits activate, and every participating employee begins accumulating cash value in their IUL policy. You receive a participation summary, the savings become a permanent line item on your financials, and the program runs without requiring ongoing management from you or your HR team.
Does This Describe Your Business?
You need at least 10 employees and a consistent payroll. If any of the situations below match your business, a 20-minute conversation with Demetrice could produce thousands of dollars in annual savings you are currently sending to the IRS.
Straight Answers to the Questions You Have Right Now
These are the questions Demetrice hears on every first conversation. Read through them before your call and you will arrive with a clear picture of exactly what to expect.
Yes, completely. The program is structured under IRS Section 125, which has been part of the tax code since 1978. Section 125 allows employers to offer certain benefits on a pre-tax basis, which reduces each employee's taxable income. When taxable income goes down, the FICA taxes both the employee and employer owe go down proportionally. The employer's share of FICA, which is 7.65% of each employee's taxable wages, decreases automatically with every enrolled employee every pay period. This is not a loophole; it is exactly what Section 125 was designed to do.
Your net cost is zero or better. The employer savings on FICA taxes typically exceed the program's administrative cost within the first month. The paycheck comparison in this page shows a real example: an employer saves $293.25 in FICA taxes for one employee in one pay period. Multiply that across your full workforce and the full year and the program pays for itself many times over. There are no upfront implementation fees charged to you, and the advisor handles all setup and enrollment at no additional cost to your business.
Their take-home pay stays the same or goes up by a few dollars. The pre-tax program premium reduces their taxable income, which reduces the taxes withheld from their paycheck. That tax reduction offsets the program fee and funds the life insurance premium. In the paycheck comparison on this page, the employee's take-home pay increased from $2,945.59 to $2,949.84 while simultaneously gaining a comprehensive wellness benefits package and a $200-per-month life insurance policy. Employees do not lose a dollar of take-home pay to participate.
No. The program layers on top of everything you already have. Your existing health plan remains untouched. Your payroll provider remains unchanged. Your current benefits package stays in place. The only modification is the addition of a pre-tax payroll code that your payroll specialist configures. Employees keep every benefit they had before enrollment and gain access to the new suite in addition to it. Nothing is replaced, removed, or disrupted.
From agreement to go-live, the typical implementation timeline runs a few weeks, depending on the size of your payroll and your current payroll provider's configuration process. Your time investment is minimal. You will spend time on the initial intake call, review and sign the master service agreement, and participate in a kick-off call with the advisor and your payroll specialist. The advisor handles plan documents, payroll code setup, employee enrollment communication, and the mock payroll run before anything goes live. Most business owners report less than three hours of their personal time from start to finish.
Enrollment is voluntary. Employees who choose not to participate continue receiving their current benefits and paycheck exactly as before. The employer still benefits from the FICA savings generated by employees who do enroll, and those savings increase proportionally as more employees participate. Demetrice's team provides clear, straightforward employee communication materials that explain the program and its benefits, which consistently produces strong voluntary participation rates when employees understand the take-home pay comparison.
Free Business Savings Analysis
Tell Demetrice the basics about your business and he will run a custom payroll savings analysis showing your projected annual FICA reduction, your employees' paycheck comparison, and the full benefits package your team would receive. There is no cost and no commitment required to get the numbers.
Demetrice will reach out within 1 business day with your custom payroll savings report. If you would rather talk today, call him directly at (404) 567-9560.
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