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Section 125 Pre-Tax Plan

Managing employee benefits can feel like walking a tightrope. Payroll taxes, complex coverage options, and employees wanting more, all while keeping costs under control. It’s stressful. But there’s a smarter way: a Section 125 pre tax plan. It helps businesses reduce taxes while giving employees real value in one streamlined solution. BrightPath’s Revive plan leverages Section 125 to deliver a fully compliant, automated, and cost-free program that protects your team and your bottom line.

Imagine a plan that saves your business thousands, gives employees the care they need, and covers their families, all without the headaches of traditional administration. That’s the power of a pre-tax Section 125 plan.

A pre-tax Section 125 plan lets employees pay for benefits before taxes hit their paycheck. Less tax, more take-home pay. Employers save too because payroll taxes go down. Simple, smart, and everyone wins.

BrightPath’s Revive plan goes further. It integrates preventive programs and reimbursement plans automatically, ensuring compliance while delivering real savings.

For context, a cafeteria 125 plan lets employees pick benefits. Revive builds on this, offering automation, full family coverage, and integration with programs like PCMP and SIMRP. Less paperwork, more value.

Who Can Use Pre-Tax Benefits?

Pre-tax benefits aren’t just for full-time employees. Most staff members, and in many cases, part-time workers, can take advantage of these plans. The best part? Coverage extends to families. Spouses, children, and dependents are included in the care plan, meaning everyone can access the benefits without additional cost.

Employees gain access to essential services at $0 copay:

  • 24/7 telemedicine and virtual care
  • Employee Assistance Program (EAP)
  • Mental health and counseling
  • Prescription coverage
  • In-person urgent care
  • Mayo Clinic programs
  • Minimal Essential Coverage (MEC)

  • Group Term Life Insurance ($60-100/month)
Think about it: employees covered, families protected, costs down. No hidden fees. No complicated forms. And because the plan includes family coverage, loyalty and morale increase naturally.

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Tax Savings for Employers and Employees

The biggest advantage of a Section 125 pre-tax plan? Real, tangible tax savings.

Employers save:

  • Around $1,100 per W2 employee per year
  • 5–10% reduction on healthcare costs

  • Lower payroll tax liability


Employees save too:

  • Reduced taxable income
  • Higher take-home pay
  • Pre-tax coverage for medical, dental, and vision

When businesses leverage taxes Section 125 correctly, the impact is immediate. Imagine keeping thousands in your pocket while offering employees top-tier benefits. With BrightPath, the process is fully automated. No piles of forms. No compliance nightmares. Just smooth, measurable savings.

What Can Be Covered Pre-Tax?

A Section 125 pre-tax plan covers a wide range of benefits, giving employees and families the care they need at $0 copay. Here’s what Revive includes:

  • Family coverage with up to 12 annual care visits
  • Mental health and counseling support
  • Telemedicine anytime, day or night
  • Prescription coverage with no out-of-pocket cost
  • In-person urgent care visits
  • Mayo Clinic programs for specialty care guidance

  • Discounts on vision, dental, and prescriptions
  • Minimal Essential Coverage (MEC)

  • Group Term Life Insurance for employees and family

All of these benefits come from pre-tax dollars, meaning employees get more value while employers reduce taxable payroll. That’s the magic of Section 125 tax deductions, everyone wins.

How to Start a Pre-Tax Plan

Starting a Section 125 pre-tax plan is simpler than you think. BrightPath handles everything, making the process fast, compliant, and worry-free:
  • Consult with BrightPath to assess eligibility and design the plan

  • Select benefits for employees and their families



  • Enroll staff quickly and efficiently



  • Monitor savings, coverage, and utilization with an easy-to-use dashboard
No extra cost. No guesswork. Minimal effort. Maximum results. Automation ensures compliance, and employees get immediate access to all benefits. It’s stress-free benefits administration at its best.

What’s Included in a Tax-Saving Plan?

BrightPath’s solution goes beyond basic section 125 pre tax deductions. Revive combines multiple programs to maximize savings and employee satisfaction:
  • Preventative Care Management Plan (PCMP): Preventative Care Management Plan (PCMP): Focused on early screenings and preventive measures to reduce future healthcare claims
  • Self-Insured Medical Reimbursement Plan (SIMRP): Reimburses eligible medical expenses, fully leveraging pre-tax contributions

This combination means lower costs, improved retention, and happier, healthier employees. Add $0 copay prescriptions, telemedicine, and Group Term Life Insurance for employees and their families, and you’ve got a plan that protects your team and your margins.

Short steps, long-term benefits. That’s the difference between a pre-tax plan and the Revive experience.

The Bottom Line: Why Choose a Pre-Tax Plan

A Section 125 pre-tax plan is more than tax savings. It’s a strategy to build a stronger, more loyal team. Employees get premium benefits. Families are fully protected. Employers save on payroll taxes and healthcare costs. By using Section 125 plansSection 125 plans, businesses can deliver value without adding cost or complexity.

BrightPath provides a fully managed, compliant solution that takes the stress out of benefits administration. No paperwork overload. No surprises. Just real savings, real benefits, and happier employees.

Book your 10-minute consultation, get a free proposal today, or talk with an expert to see how a Section 125 plan can transform your benefits and protect your bottom line.

Frequently Asked Questions

Can employers pick and choose benefits?

Absolutely. Choose what fits your team. BrightPath lets you customize coverage while staying fully compliant. Offer exactly what employees need—no guesswork, no hassle.

Not at all. Pre-tax deductions happen automatically. Payroll stays smooth. HR saves time. Compliance and reporting? Handled. You focus on running your business.

Yes, but don’t worry. Limits depend on the type of benefit and IRS rules. BrightPath makes sure employees stay within the rules while maximizing tax savings for everyone.

Fast. Enrollment can happen in days, not weeks. BrightPath manages setup, compliance, and administration. Quick, simple, stress-free. Employees get benefits immediately.