Anonymous case studies showing how organizations of all sizes are reducing payroll taxes and enhancing employee benefits through Section 125 preventive healthcare plans.
A national healthcare network with 320 W-2 employees implemented a Section 125 preventive healthcare plan. By providing pre-tax wellness benefits, the organization reduced its taxable payroll, resulting in over $217,000 in annual payroll tax savings. Employee absenteeism dropped and primary medical plan claims decreased, contributing to lower renewal costs the following year.
A regional construction firm with 185 employees enrolled in a preventive healthcare plan. The pre-tax deduction structure reduced the company's FICA obligations by over $125,000 annually. Additionally, with employees gaining access to 24/7 telehealth and wellness resources, the firm saw a measurable reduction in workers' comp claims and job-site incidents.
A mid-size financial advisory firm with 95 employees adopted a Section 125 preventive care plan. The firm saved over $64,000 in its first year while employees gained access to mental health resources and health coaching. Engagement scores improved and voluntary turnover dropped, with HR attributing the improvement to the enhanced benefits package.
A precision manufacturing company with 540 employees implemented a preventive healthcare plan across its workforce. The reduction in taxable wages generated over $367,000 in annual payroll tax savings. The company also reported decreased healthcare claims related to chronic conditions, and the $35-per-employee service fee was a fraction of the per-employee savings realized.
A growing software company with 72 employees enrolled in a preventive care plan to combat rising burnout. The Section 125 structure saved nearly $49,000 annually in payroll taxes. Employees utilized the 24/7 telehealth and mental health resources extensively, with the company reporting improved productivity and a stronger retention rate among engineering talent.
A national freight company with 230 drivers and staff adopted a preventive healthcare plan. With a distributed workforce, 24/7 telehealth access proved especially valuable. The company saved over $156,000 annually on payroll taxes, and the combination of virtual care access and wellness incentives contributed to a notable reduction in turnover and costly insurance claims.
A public charter school network with 150 staff members implemented a Section 125 preventive care plan. Annual payroll tax savings exceeded $102,000, which the district redirected toward classroom resources. Teachers and administrators gained access to wellness screenings and mental health support, contributing to improved staff satisfaction and lower annual insurance premium increases.
A boutique hotel group with 410 employees across multiple properties implemented a preventive healthcare plan. The organization saved over $278,000 annually on payroll taxes. With high-turnover roles in hospitality, the enhanced benefits package served as a meaningful differentiator in recruiting, and the company reported improved staff energy and guest satisfaction scores.
A mid-size accounting and consulting firm with 63 employees adopted a Section 125 preventive care plan. The firm saved over $42,000 in its first year while offering employees enhanced wellness benefits including telehealth and mental health resources. The zero upfront cost and guaranteed net-positive structure made it a straightforward decision, and the firm reported stronger employee satisfaction scores at its next annual review.
A multi-state retail operation with 2,740 W-2 employees across 38 locations implemented a Section 125 preventive healthcare plan company-wide. The rollout was coordinated across existing regional payroll cycles with zero disruption. Annual payroll tax savings exceeded $1.86 million, and the organization saw a measurable decline in emergency room utilization among participating employees, further reducing claims on the primary medical plan.
A regional healthcare system with 4,215 employees across hospitals, clinics, and administrative offices adopted a preventive care plan as part of a broader payroll optimization initiative. The pre-tax benefit structure generated over $2.86 million in annual FICA savings. With staff already in the healthcare field, adoption rates were exceptionally high, and the organization leveraged the 24/7 telehealth benefit to reduce internal urgent care visits among its own workforce.
A national logistics and distribution company with 1,380 employees across 12 distribution centers enrolled its workforce in a Section 125 preventive healthcare plan. With employees spread across multiple states, compliance was handled automatically through payroll integration. The company saved over $938,000 in its first year and reported that the wellness benefits — particularly mental health resources and telehealth — helped reduce driver turnover, one of the industry's most expensive operational challenges.
Every case study above uses the same simple formula — $680 in average annual payroll tax savings per qualified W-2 employee.
Each employee receives a fixed pre-tax deduction for preventive healthcare benefits, reducing their taxable wages and the employer's FICA obligation.
The $35 per-employee service fee is only charged after savings are confirmed — and is always less than the employer's realized savings.
Savings begin as early as the next payroll cycle after implementation. No waiting period, no upfront costs, no disruption to existing benefits.
Enter your employee count and see exactly what your business could be saving.