Implementing a cafeteria benefit program under IRS Code Section 125 is a tried-and-true approach if you want a more intelligent, cost-free way to offer genuine advantages to your team. However, not all strategies are equal, and BrightPath Advantage is far from conventional.
Both financially and culturally, this step-by-step manual guides you through what is involved in putting a Section 125-integrated plan into effect and how BrightPath Advantage makes the process smooth, compliant, and effective. Let’s clarify what can sometimes seem difficult.
First, What Is a Section 125 Cafeteria Benefit Program?
An IRS Code Section 125 plan lets workers turn some of their taxable income into non-taxable perks. Often called a cafeteria benefit program, this system is paid with pre-tax money for health plan, vision, dental, and other qualifying health expenditures, among other choices.
BrightPath Advantage goes much further than a basic cafeteria benefit program. It leverages IRS Code Section 125 alongside a fully managed Preventive Care Management Plan (PCMP) and Self-Insured Medical Reimbursement Plan (SIMRP). This combination creates one of the most compliant and benefit-rich programs available today.
Step-by-Step: How to Implement BrightPath Advantage
Step 1: Schedule a 10-Minute Consultation
A straightforward, no-obligation talk begins your BrightPath Advantage path. In only ten minutes, you will know how your company could save up to $680 per employee per year, without altering your current coverage or raising expenses.
This first call lets us know your payroll setup and workforce structure so we can customize a solution that fits your present systems.
Step 2: Custom Plan Design & Eligibility Review
Next, we design a compliant plan structure that fits your workforce. Unlike a one-size-fits-all Section 125 plan, BrightPath Advantage includes:
- A compliant Section 125 framework
- Preventive Care Management Plan (PCMP)
- Self-Insured Medical Reimbursement Plan (SIMRP)
This trio works together to deliver robust, family-wide benefits while reducing your taxable payroll, creating measurable savings right away.
Eligibility is reviewed to ensure your business qualifies and to identify which employees can participate. Most employers with W-2 workers are eligible.
Step 3: Seamless Payroll Integration
Our implementation team collaborates with your payroll provider to integrate the BrightPath Advantage plan directly into your system. This is where the tax-saving magic happens.
By using pre-tax deductions under IRS Code Section 125, your employees’ taxable income is reduced. This lowers your payroll tax liability and creates instant savings, typically $600–800 per W-2 employee annually.
BrightPath handles the technical lift. There’s no disruption to your existing coverage, no new carriers to manage, and no out-of-pocket cost to you or your employees.
Step 4: Employee Onboarding & Education
This is where BrightPath really stands out. We take care of the entire employee education process with clear, simple communication that explains:
- What is the benefit?
- Why doesn’t it reduce their take-home pay?
- What new services do they gain access to
More than 30,000 employees are already enrolled through BrightPath Advantage. They enjoy enhanced wellness benefits, mental health support, and 24/7 Telehealth—all with $0 copays. These benefits come at no extra cost, and there’s no change to their paycheck.
That means higher perceived value, stronger engagement, and improved retention, without any financial sacrifice.
Step 5: Go Live in 30–45 Days
From kickoff to go-live, the full process takes just 30 to 45 days. Once live, BrightPath Advantage is fully managed by our team, including compliance, updates, reporting, and ongoing employee support.
Your HR team won’t be buried in extra work—we’ve got it handled.
Why Choose BrightPath Advantage?
Unlike traditional cafeteria benefit programs, BrightPath Advantage isn’t just about tax savings. It’s a smarter path forward that delivers lasting impact on your bottom line and workplace culture.
Here’s why employers are making the switch:
Employer Benefits:
- Save approximately $680 per year per W-2 employee
- No out-of-pocket cost or fees
- Reduce healthcare claims (avg. $1,400 in savings over 3 years)
- 30–45 day fast implementation
- Boost retention and performance
- Immediate bottom-line improvement
Employee Benefits:
- No reduction in take-home pay
- $0 copay 24/7 Telehealth (doctors, nurses, health coaching)
- Mental health, addiction, and counselling support
- Mayo Clinic tools and personalized wellness dashboard
- Universal Life, Critical Illness, and Disability coverage
- Optional enhancements for spouses and dependents
BrightPath helps employers navigate benefits with clarity, not complexity. By integrating a cafeteria benefit program using IRS Code Section 125 with PCMP and SIMRP, we’re delivering more for both employers and employees, without costing anyone a dime.
Common Misconceptions About Section 125 Plans
Let’s clear up a few misunderstandings:
- It’s not just about health plan deductions
BrightPath Advantage includes health + wellness, + financial protection.
- Employees will lose money from their paycheck
Nope. Their net pay stays the same or improves thanks to tax savings
- Implementation is time-consuming or confusing
We handle it all—planning, payroll, employee education, and compliance
- All Section 125 plans are the same
Only BrightPath Advantage combines Section 125, PCMP, and SIMRP in a fully managed structure built for impact
The BrightPath Advantage Difference
BrightPath was created to help companies offer more meaningful benefits without getting buried in cost or complexity. With BrightPath Advantage, you can:
- Offer new wellness and mental health benefits to your team
- Keep take-home pay the same
- Cut your payroll taxes
- Enhance morale, retention, and performance
- Do it all with no fees or out-of-pocket expenses
This is stress-free benefits management, designed for results.
Ready to Take the Smarter Path Forward?
More than 30,000 employees are already benefiting from BrightPath Advantage—and your business could be next.
Let’s eliminate unnecessary payroll taxes and build a stronger, healthier, more loyal team, without disrupting your current benefits.
Book your 10-minute consultation
