Unlock Tax-Free Employee Benefits with a MERP Wellness Program

Lower Costs. Boost Employee Satisfaction. Enjoy Tax Savings.

A Cafeteria Plan, under IRS Section 125, is a powerful tool for

small and medium-sized businesses looking to offer competitive employee benefits while taking advantage of tax savings. A wellness benefits plan under IRS Section 125 allows businesses to offer tax-advantaged health and wellness reimbursements
to employees while significantly reducing payroll tax liabilities. Unlike traditional insurance plans, this approach focuses on
preventive care, employee well-being, and financial flexibility
for both employers and workers.

What is IRS Section 125?

IRS Section 125, also known as a Cafeteria Plan, is a tax-advantaged benefits program that allows employees to select from a variety of pre-tax benefit options. These plans are a powerful tool for small and medium-sized businesses aiming to attract and retain top talent while reducing overall payroll costs.

How Does It Work?

With a Section 125 plan, employees can allocate a portion of their salary toward specific benefits before taxes are applied. This reduces their taxable income, which means:

✅ Employees pay less in income taxes and have more take-home pay.

✅ Employers save on payroll taxes, including Social Security and Medicare contributions.

Key Advantages of Implementing a Wellness Benefits Plan

✔️
Tax-Free Reimbursements
– Employees can get reimbursed for eligible wellness-related expenses without being taxed.

✔️
Significant Business Tax Deductions
– All contributions are fully deductible as a business expense.

✔️
Reduces Payroll Tax Burden
– Since contributions are made on a pre-tax basis, employers
lower their taxable payrollwhile providing meaningful benefits.

✔️
Works Alongside Existing Benefits
– A wellness reimbursement plan can complement traditional health

insurance, retirement plans, and

other perks to create a comprehensive employee benefits package.