In today’s competitive business environment, every dollar counts. Along with seeking cost reduction, you must find ways to improve employee benefits as a business owner. A IRS Section 125 plan represents a strong business strategy that numerous organizations ignore. Our company Renaissance Advisory, assists businesses to adopt advanced solutions that unite Section 125 plans with Preventative Care Management Plan (PCMP) and Self Insured Medical Reimbursement Plan (SIMRP) programs through full management support. The innovative approach proves beneficial for your payroll tax reduction efforts and employee health improvement, with no impact on existing employee benefits structure.
The Smarter Way to Cut Payroll Tax Waste
Every year, businesses unknowingly lose thousands of dollars due to outdated payroll structures and missed tax-saving opportunities. Many employers don’t realize how much they’re overspending or that a simple, compliant solution exists to remedy the situation. That’s where the Renaissance Advisory comes in. This fully managed program leverages a Section 125 plan structure to generate measurable savings and enhance benefits—all at no cost to the business.
How Savings Are Achieved
When employees contribute pre-tax dollars to eligible benefits under a Section 125 plan, their taxable income is lowered. This reduction decreases payroll taxes for both employees and employers, leading directly to significant savings.
No-Cost, Automated Integration
Our plans are designed to integrate seamlessly with your current payroll system, ensuring a quick, hassle-free implementation that starts saving money immediately—usually within the first payroll cycle.
Understanding Section 125 Plan
Our section 125 plan isn’t a traditional cafeteria plan; it’s a comprehensive program that combines three essential benefit layers, resulting in a truly innovative solution.
Section 125 Foundation
At its foundation, the plan employs the IRS Section 125 plan framework to allow employees to pay certain benefits with pre-tax dollars. This component is the primary driver of payroll tax savings, which can amount to an average of $600–$800 per W2 employee every year.
Preventative Care Management Plan (PCMP)
The PCMP component supplies 24/7 telehealth in addition to routine screenings and wellness coaching as proactive healthcare services. Through preventative care programs employees achieve better health results which decreases their medical claim expenses in the long run.
Self Insured Medical Reimbursement Plan (SIMRP)
SIMRP enables tax-free reimbursements for supplemental benefits like critical illness, disability, and additional coverage options. This layer fills gaps that traditional plans might miss, offering comprehensive support without additional costs.
Together, these components create a structured system that not only drives substantial payroll tax savings but also boosts the value and effectiveness of your employee benefits.
Why Employers Love Renaissance Advisory
Modern employers benefit greatly from implementing an enhanced IRS Section 125 plan strategy. It’s designed to deliver real financial gains without any out-of-pocket expenses.
Key Employer Benefits
Employers typically see:
- Annual savings of $600–$800 per W2 employee, which adds up quickly for larger teams.
- A significant reduction in overall payroll tax liabilities due to pre-tax benefit contributions.
- Lower healthcare claims through the emphasis on preventative care, with reported savings averaging $1,400 per employee over three years.
- Rapid, automated implementation within 30–45 days, ensuring minimal disruption to existing operations.
- Improved recruitment and retention as enhanced benefits contribute to higher employee satisfaction.
These benefits combine to create immediate and long-term improvements in cash flow and productivity.
Streamlined Process
The plan is fully managed by Renaissance Advisory. This means you won’t need additional HR resources to oversee enrollment or compliance. The entire system is designed to operate automatically, providing consistent savings from the first payroll cycle onward.
The Employee Advantage
While the financial gains for employers are impressive, employees are equally rewarded by an enhanced benefits package that improves their financial and overall health without reducing their pay.
Increased Take-Home Pay
By using pre-tax dollars to pay for eligible benefits under the internal revenue code 125, employees experience a 3–4% boost in net pay. For many, this translates to an extra $100 per month in take-home pay—an enhancement that makes everyday expenses more manageable without any change to their base salary.
Comprehensive Health and Wellness Support
Employees gain access to 24/7 telehealth services, mental health counselling, and a suite of wellness tools, such as personalized dashboards powered by Mayo Clinic resources. They also receive additional coverage options including Universal Life, Disability, and Critical Illness insurance, with benefits extending to spouses and dependents. This full range of benefits makes them feel supported and valued, resulting in higher morale and productivity.
No Disruption to Existing Benefits
One of the greatest strengths of our Plan is that it works alongside your current health plans. Employees retain their existing coverage while enjoying additional benefits that enhance their overall well-being—all through a single, integrated system.
Debunking Common Misconceptions
Despite the clear advantages, some employers remain skeptical about modern Section 125 solutions. Let’s address some typical myths:
Too Complicated to Implement
Many assume that a Section 125 plan is burdensome and requires extensive paperwork. In reality, the plan is fully automated and managed by experts at Renaissance Advisory, making the process smooth and straightforward.
It Will Disrupt Current Benefits
A frequent concern is that integrating a new plan might force changes in existing health insurance. However, our plan is designed to complement current offerings and does not replace or interfere with them.
The Savings Are Insignificant
Some business owners question whether the tax benefits are substantial. By reconfiguring payroll expenses into tax-advantaged categories under the internal revenue code 125, companies can see immediate and measurable savings that positively impact the bottom line.
Hidden Costs
Perhaps the most common myth is that there are hidden fees. The truth is that it is delivered at no out-of-pocket cost to employers. It is a fully managed solution, so you get all the benefits without any additional expense.
The Bottom Line: Maximizing Savings With Minimal Disruption
Reducing payroll taxes while enhancing employee benefits is not just a possibility—it’s happening right now. This program delivers real payroll tax savings and lowers your tax liability without any added cost, all while providing a more comprehensive benefits package for your employees.
By integrating a modern IRS Section 125 plan with preventative care and reimbursement benefits, Renaissance Advisory’s Plan transforms your payroll structure into a strategic asset. The result is a win-win scenario where your business enjoys improved margins and your employees receive enhanced support without any compromise.
Ready to Unlock Real Savings?
If you’re ready to modernize your benefits strategy, reduce payroll taxes, and boost overall employee satisfaction, then it’s time to explore our services. Renaissance Advisory is here to help you implement this innovative, fully managed solution with minimal disruption and maximum impact.
Book your 10-minute consultation today, request a free proposal, or talk with an expert to discover how Renaissance Advisory can transform your payroll and benefit strategy.