Scalable Benefits for Tech Startups
What Is a Section 125 Plan?
A Section 125 Plan (also called a cafeteria plan) allows employees to use pre-tax dollars to pay for key expenses like:
Health insurance premiums
Medical costs like prescriptions or co-pays
Dependent care, such as daycare or after-school programs
Optional add-ons like telehealth, identity protection, or commuter benefits
Because these expenses are paid with pre-tax income, employees take home more of their pay, and employers pay less in payroll taxes.
For a tech startup, this means:
Employees feel supported without higher salaries
You save 7.65% on every dollar of pre-tax deductions
You can offer benefits even without a large HR team
With a Section 125 Plan, you offer more value to your team without raising costs.

Why Startups Need Smart, Scalable Benefits
Most startups can’t offer Google-style perks or massive salary packages. But what you can offer is a lean, forward-thinking benefits program that shows your team you care—without breaking the bank.
Here’s why a 125 Plan fits the startup model:
Easy to implement with minimal staff
Affordable to set up and maintain
Requires no employer-funded contributions
Scales easily as your headcount grows
Helps with recruitment and retention early on
When you’re competing for engineers, marketers, and product talent, benefits matter. A Section 125 Plan helps level the playing field.
What Can You Offer?
Section 125 Plans are customizable. Whether you want to start simple or offer a robust suite of benefits, you can pick the features that make the most sense for your company right now.
1. Premium Only Plan (POP)
Let employees pay for their health insurance premiums with pre-tax dollars—even if they buy their own insurance through the marketplace or a spouse’s plan.
Best for: Startups not offering employer-sponsored health insurance yet.
2. Flexible Spending Account (FSA)
Give employees the ability to set aside tax-free money for:
Doctor visits
Prescriptions
Glasses, dental visits, and more
This helps younger, health-conscious teams cover costs without extra taxes.
3. Dependent Care FSA (DCAP)
Support working parents on your team by letting them pay for:
Daycare
Preschool
After-school programs
Summer camps
Tax-free contributions = more relief for busy tech families.
4. Add-On Benefits
Offer extra value at low cost through:
24/7 telemedicine
Identity theft protection
Financial coaching
Pet care assistance
Commuter benefits (Section 132)
Discount travel and lifestyle perks
All of these can be bundled into your Section 125 Plan, with employees funding them pre-tax and you saving on payroll.
Easy Setup With No HR Team Required
Startups move fast, and you need tools that keep up. That’s why Section 125 Plans can be launched quickly and managed easily—no large HR department needed.
Here’s how setup works:
Pick your plan (we help you choose)
Get IRS-compliant plan documents
Plug it into your payroll system
Share enrollment info with your team
Start saving immediately
We handle the paperwork, the compliance, and the support so you can stay focused on growth.
Perfect for These Startup Teams
Startups move fast and need benefits that keep up Whether you are bootstrapped or backed by investors this is a smart way to offer real value to your team without blowing the budget See why growing tech teams are turning to this solution.
Section 125 Plans are especially useful for:
Seed-stage and pre-seed startups
Remote or hybrid engineering teams
Bootstrapped companies without benefits yet
Tech teams scaling from 5 to 50 employees
Venture-backed startups needing lean HR solutions
Whether you’re building software, hardware, marketplaces, or services—if you employ W-2 staff, a Section 125 Plan can fit your model.
Try Our Tax Savings Calculator
Wondering how much your business could actually save This quick calculator shows the real numbers behind smarter benefits in just seconds Run the math for your team and see why so many startups are using this tool to unlock hidden payroll savings.
Use it to:
Estimate your payroll tax savings
See how much your team could keep
Pick the best plan for your stage
Start saving in just a few clicks—your team will thank you.
📣 Disclaimer: Calculator results are for informational purposes only. Actual savings may vary based on participation and payroll setup.
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


