Let the IRS give your
employees a raise.

Most business owners have never heard of Section 125 — a federal tax code that puts $72 more per paycheck in your employees' pockets and saves you $681+ per employee, per year. Zero cost to you or your employees. Your team gets a raise. You save thousands. The government covers both.

Verified by CBIZ — Top-7 U.S. Accounting Firm (August 2025)
Legal opinion by HitesmanLaw — Super Lawyer-rated ERISA attorney (May 2025)
$500,000 legal protection per enrolled employer
No changes to current insurance · No new carriers · Live in 30–60 days

See What You'd Save

5 quick questions  ·  instant estimate  ·  no email required

Step 1 of 5

Minimum 10 W-2 employees  ·  $25K+ salary  ·  ACA-compliant health coverage required
Verified by CBIZ & HitesmanLaw  ·  Zero cost  ·  Zero obligation

⚖️ Federally Funded  ·  Zero Cost  ·  IRS Law Since 1978
IRS Section 125 — Federal Law Since 1978
No New Insurance Required
No Changes to Current Benefits
ACA · ERISA · COBRA · HIPAA Compliant
Live in 30–60 Days
Section 125 for Assisted Living & Skilled Nursing Facilities

Section 125 Plan for Assisted Living & Skilled Nursing Facilities

Senior care facilities — assisted living, memory care, skilled nursing — typically run 30–200 W-2 caregivers per facility. Section 125 layers cleanly on top of the existing benefits stack and delivers six-figure annual savings on facilities of even modest size.

Dan Salceda — a practicing attorney and the owner of Golden Living Point Loma in San Diego — implemented his own legal review of the IRS code before enrolling his 51-employee facility. He saves $120,000/year. The fact that an attorney did his own diligence is the validation most operators in this category respond to.

Senior care WC rates run 5–7% on average. Combined with the FICA savings, a 100-bed facility employing 80 caregivers nets $54,528/year in FICA + roughly $33,600/year in WC reduction — approaching $90K/year total at zero cost to the operator and a $72/paycheck raise for every caregiver.

The math, your headcount

For Assisted Living & Skilled Nursing Facilities (avg WC rate ~6%), the calculator returns your exact net FICA savings + a Workers' Comp reduction estimate by classification. No email required.

→ Run the calculator
Want to see compliance proof first? CBIZ + HitesmanLaw verification →
Real Result

What this looks like in practice.

Assisted Living · San Diego, CA
$120K
saved per year
51 W-2 employees

Being a lawyer myself, I implemented a rigorous evaluation — review of tax codes, consultations with CPAs, and securing a robust legal opinion. We proceeded unanimously.

Dan SalcedaOwner & Attorney, Golden Living Point Loma
Legal & Accounting Proof

Verified by the Best in the Country

Skepticism is the right response. We don't ask you to take our word for it — we bring institutional proof that convinced CPAs, CFOs, attorneys, and insurance brokers to enroll their own companies.

Darcy L. Hitesman, J.D.

HitesmanLaw P.A. · Minneapolis, MN

35+ years as an Employee Benefits attorney specializing in IRC Section 125, ERISA, HIPAA, and the ACA. Her May 5, 2025 opinion letter concludes: “In this firm's opinion, the Program described satisfies applicable IRS requirements.”

She specifically reviewed the IRS Chief Counsel Advice memoranda on "double-dip" arrangements — the exact schemes the IRS has flagged — and concluded this program is built differently and compliantly.

Named a Super Lawyer every year since 2000. AV-rated (highest possible rating) in Martindale-Hubbell since 1998.
Co-author: ERISA Compliance for Health & Welfare Plans (Thomson Reuters/EBIA) — the national compliance standard manual since 1999.
Member, Technical Advisory Group — Employers Council on Flexible Compensation. She helps set the industry standards for Section 125 plans nationally.

CBIZ Advisors LLC

Top-7 U.S. Accounting Firm · Cleveland, OH · 135,000+ Clients

CBIZ independently reviewed the program against IRC §§ 125, 105, and 106, plus ERISA, ACA, and COBRA requirements. Their August 22, 2025 letter concludes: “If operated per its provisions, the Program appears to satisfy the requirements of ERISA, the ACA, and COBRA as well.”

This review was commissioned by Affinity Hospice's CEO before enrolling his nationwide organization — and the CFO (himself a CPA) shared the letter publicly in his testimonial.

Top-7 U.S. accounting firm. 10,000+ employees across 100+ offices. Serves 135,000+ clients nationally.
Review covers: IRC §125 cafeteria plan, §105/106 wellness benefit rules, ERISA plan asset treatment, ACA integration, and COBRA obligations.
$500,000 legal protection per enrolled employer · $10,000 per employee participant · Insurance-backed.
🏛️

Direct From the U.S. Government

Section 125 has been in the Internal Revenue Code since 1978. Congress wrote it there specifically to encourage employers to fund preventive healthcare for American workers. This is not a loophole — it is the precise, intended use of a 47-year-old federal law, grounded in IRS Revenue Ruling 69-154, the specific published ruling supporting the benefit payment structure.

→ Verify on IRS.gov — Section 125 Cafeteria Plans ↗
Section 125 — Assisted Living & Skilled Nursing Facilities FAQ

Questions specific to your industry

No. Section 125 is a federal payroll-tax structure that operates independently from Medicaid/Medicare clinical and billing rules. State Medicaid waiver compliance is unaffected.
Yes, provided their annualized W-2 earnings cross $25K and they are covered under an ACA-compliant group health plan (yours or a spouse's). Plan eligibility is reviewed annually by the plan administrator.
Yes — provided you have 10+ W-2 employees earning $25,000+/year and offer (or your employees have access to) ACA-compliant group health coverage. The savings are mechanical: each enrolled employee saves the employer $681.60/year in net FICA after the program fee, regardless of industry. Your industry mostly determines the size of the additional Workers' Comp savings — at a 6% WC rate, that side of the math can be substantial.
No. The specialist team integrates with whatever payroll provider you already use (ADP, Paychex, Gusto, Rippling, your own internal team, etc.) and the wellness benefits layer on top of your current group health insurance. Your broker relationships, carriers, and existing benefits stay exactly as they are. Section 125 just changes how part of your payroll flows through the IRS.
Setup takes 6–8 weeks from a signed agreement. The first payroll cycle after go-live reflects the reduced FICA tax. Workers' Comp adjustments apply at your next policy renewal cycle, since WC premiums are calculated on reportable taxable payroll.
The program admin fee is $35/employee/month. There is no setup fee, no per-employer subscription, no upgrade tiers. The fee is netted against gross FICA savings — net employer savings are $681.60/employee/year ($56.80/month). The math is identical for every business in every industry.
Three sources: IRS.gov's Section 125 page (the law itself, in force since 1978), the May 2025 HitesmanLaw P.A. legal opinion (8 pages), and the August 2025 CBIZ Advisors LLC review. Both letters are share-able PDFs and are routinely brought to clients' own CPAs before signing — every business in our case studies did exactly that.

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Verified: CBIZ Advisors LLC (Aug 2025) · HitesmanLaw P.A. (May 2025)
$500K legal protection per enrolled employer · IRS Section 125 · Federal law since 1978