Section 125 Cafeteria Plan Business Savings Calculator

A Section 125 Plan, also known as a Cafeteria Plan, is a powerful (and IRS-approved) way to help your employees reduce their taxable income while lowering your payroll taxes at the same time. The best part? It costs nothing out of pocket to implement.

What is a Section 125 Plan?

A Section 125 Plan allows employees to pay for certain benefits — like health insurance, dental/vision, and even dependent care — with pre-tax dollars. That means lower income taxes for them and reduced payroll tax liability for you.

What Factors Affect Your Savings?

Your company’s savings will depend on a few key things:

  • The number of W-2 employees participating

  • Average employee salary

  • Benefits being offered pre-tax (health, dental, vision, FSA, HSA, etc.)

  • Your share of payroll taxes (typically 7.65% FICA)

Try the Calculator Now

See exactly how much you could save — it’s quick, simple, and free.
Just enter a few details below, and we’ll show you your estimated annual savings:

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.

Success Stories: See What Company Employees Have To Say About 125 Plans

4.7 Customer Reviews
Section 125 Plan Employee Satisfaction: 98% Delighted with Their Plan Benefits

Section 125 Plan Employee Benefits