Hospitality Restaurants Benefits
Why Hospitality Needs Better Benefits
The hospitality industry is notorious for high turnover and burnout. Most small restaurant owners know the pain of hiring, training, and losing staff in a matter of months. According to the National Restaurant Association, hospitality turnover is among the highest in the country—often exceeding 70% per year.
But what’s often missed? One of the best tools to reduce turnover isn’t just higher wages. It’s smarter compensation. That’s where benefits—especially pre-tax benefits through a Section 125 Plan—come in.
Hospitality workers want stability, flexibility, and support. They value:
Affordable healthcare options
Predictable take-home pay
Flexible schedules
Supportive workplace cultures
Offering a benefits package—even a modest one—signals that you care. It boosts loyalty. And when you do it using pre-tax dollars, you’re not only supporting your team—you’re cutting your own costs, too.
Why 125 Plans Work for Restaurants & Hospitality Teams
Let’s be honest—offering full benefits in the hospitality industry can feel impossible. Many staff work part-time or seasonally. Budgets are tight. And HR departments? Not always in the picture.
But Section 125 Plans are designed to be flexible and accessible. You don’t need a big corporate structure to get started. You just need a W-2 employee payroll and the desire to help your team earn more—without raising costs.
With the right setup, you can offer:
Pre-tax health premium savings
Flexible spending accounts for healthcare or child care
Add-on perks like telemedicine and financial wellness tools
All while lowering your FICA payroll tax costs by 7.65%
That’s how benefits become a smart business move.
Cost-Effective for Employers
Hospitality is a margin-sensitive industry. We get it. A single benefit misstep could eat into your profits. That’s why Section 125 Plans are so popular with restaurant and hotel owners:
You control the offerings
You choose your budget
You reduce your tax burden
The average employer saves $500 to $1,000+ per year for every employee who participates. And because these savings come from reduced payroll tax—not your operating revenue—you’re building retention without added labor costs.
Benefits Even for Small Teams
Whether you have five full-time staff or 40 part-timers, Section 125 Plans can work for you. In fact, small restaurants and local hotels are among the biggest winners, since they often miss out on other tax credits or healthcare subsidies.
No minimum number of employees is required.
And if you offer health insurance but can’t afford to fully fund premiums, a 125 Plan lets you support your team while still saving money.
📣 Important Note: Section 125 Solutions LLC does not provide legal or tax advice. We connect employers with trusted third-party administrators who manage IRS-compliant cafeteria plans.
Not Offering Benefits? Here’s What It’s Costing You
We get it—margins are tight, and every dollar counts. But not offering benefits may be costing more than you think.
Higher turnover = more training costs
Employees leave for better packages
You miss out on tax savings
Raises cost more than pre-tax perks
With a Section 125 Plan, you can offer real value, stretch your payroll, and build a more loyal team—all without increasing base wages.
Try Our Free Savings Calculator Now!
Use our calculator to:
Estimate your annual tax savings
See how much your employees could keep in their paychecks
Compare plan types and decide what fits your team best
Try it now and build a benefits package your staff will thank you for.
📣 Calculator Disclaimer: Calculations are for informational purposes only and do not guarantee specific savings. Actual results vary based on employee participation and payroll data.
Book Your Consultation
Explore how Section 125 plans could save your business over $1,000 per W-2 employee each year. Book a free consultation to see how much you could be losing by not having one.
By submitting this form, you agree to receive communications via phone, text message, and email. Message and data rates may apply. Your information may be shared with trusted third-party service providers solely for the purpose of helping you explore Section 125 benefit options. You also agree to our Privacy Policy and Terms of Service.
(602) 737-3306
Success Stories: See What Company Employees Have To Say About 125 Plans
4.7 Customer Reviews
