IRS Section 125 · Established 1978

Cut $1,000 in
payroll taxes per employee.

Without changing your benefits, your broker, or anything your employees already use. We deploy a fully compliant Section 125 wellness plan and your next payroll runs leaner.

Calculate my savings Book a 15-min call

247

businesses currently saving

18,432

employees covered

cost to your business

Reclaimed for clients UPDATED MONTHLY

Total payroll tax recovered

Businesses currently enrolled247

Employees covered18,432

Avg. savings per employee$1,000

Setup time

~14 days

Setup cost

Last updated · May 2026

How it works

Three steps. Two weeks. Permanent tax savings.

Free payroll review

Send us a recent payroll summary. We model your exact FICA, FUTA, and SUTA savings — no commitment, no obligation.

Compliant plan setup

Our specialists draft your Section 125 plan documents, run nondiscrimination testing, and integrate with your existing payroll provider.

Savings on the next run

Tax savings appear on your very next payroll. Employees see bigger paychecks immediately. We handle ongoing compliance for the life of the plan.

Quick qualifier · How big is your team?

Savings calculator

See exactly what your business is overpaying.

Three inputs. Real Section 125 math — anchored on a $1,000/employee/year benchmark, adjusted for your industry and current plan status.

W-2 employees 50

Industry

Current Section 125 status

Annual employer savings

ESTIMATE

$50,000

Per employee

$1,000

Employee gain

$1,500

5-yr savings

$250,000

SHOW THE MATH

FICA reduction (7.65%)$30,000

FUTA + SUTA savings$13,000

Workers' comp adjustment$5,000

Based on IRS Pub 15-B and Section 125(d)(1).

The team behind Reclaim

Real people. Real plans. Reviewed by real ERISA counsel.

"After watching thousands of small-business owners overpay payroll taxes — while their CPAs and brokers worked in silos — I built Reclaim Payroll to close the gap. Every plan we deploy is reviewed by ERISA counsel and built on Section 125 of the Internal Revenue Code, the same framework Fortune 500 companies have used since 1978."

Tyler A Mashkow

Founder & Principal · Former payroll tax specialist · 12+ years in employer benefits

Talk to the founder directly

The honest answer

Why isn't your CPA telling you about this?

Section 125 lives in a gap. It's a tax strategy that requires a benefits product to execute — and most professionals only work on one side of that line. We sit in the middle.

Your CPA

Files your taxes

Doesn't sell or set up benefits plans

Your benefits broker

Sells you health insurance

Isn't a tax-code specialist

Your payroll provider

Runs payroll on the data given

Doesn't audit for tax-savings opportunities

We don't replace your CPA, your broker, or your payroll provider. We collaborate with all three to deploy a Section 125 plan that's already part of the IRS code — and let your existing professionals do what they do best.

For employers

A 7.65% raise — to your bottom line.

Permanent reduction in FICA, FUTA, and SUTA tax liability
Zero additional cost — savings begin on the next payroll cycle
Stronger benefits package without raising compensation
Reduced workers' comp premium in most states
Full IRS Section 125 compliance, documented and tested annually

For employees

A bigger paycheck — without a raise.

Up to $1,500+ extra take-home pay per year on average
$0 telemedicine and 24/7 mental health support included
Preventative care, screenings, and wellness coaching
Lower federal income tax and reduced FICA withholding
Layers on top of existing health insurance — no replacement

Compliance

Built on a 47-year-old IRS framework. Not a loophole.

Section 125 of the Internal Revenue Code was enacted in 1978. It is the only IRS-approved mechanism that allows employees to pay for qualified benefits with pre-tax dollars. Every plan we deploy is fully documented, nondiscrimination-tested, and reviewed by ERISA counsel.

ERISA-reviewed

Plan documents drafted and reviewed by benefits counsel

Annually tested

Nondiscrimination testing every plan year

ACA-aligned

Compatible with all major group health plans

SOC 2 hosted

Encrypted data, audited infrastructure

Verify the regulations yourself

IRS Code Section 125

The cafeteria plan statute. Enacted 1978.

IRS Publication 15-B

Employer's Tax Guide to Fringe Benefits

26 CFR §1.125-1

Treasury regulations governing cafeteria plans

By industry

Same code, section 125. Different playbooks.

Participation rates, average allocations, and onboarding flow vary by industry. Tap any industry to instantly see your projected savings.

Restaurants & food service

$47k avg. annual savings

High-volume payrolls with W-2 staff turnover

Trucking & logistics

$94k avg. annual savings

Highest participation rates of any industry

Healthcare practices

$81k avg. annual savings

Benefits-savvy workforce, strong adoption

Construction & trades

$69k avg. annual savings

Compliant for both office and field staff

Our guarantee

If we don't find at least $10,000 in annual savings, we'll buy you dinner.

Sit through our 30-minute analysis. If we can't identify at least $10,000 in annual payroll tax savings for your business, we'll send you a $500 gift card for your time. We're that confident in the math.

Claim my analysis

OFFER LIMITED TO U.S. EMPLOYERS WITH 10+ W-2 EMPLOYEES. ONE CLAIM PER BUSINESS. PROCESSED WITHIN 30 DAYS OF COMPLETED ANALYSIS.

Client outcomes

The numbers do the persuading.

We're saving more in payroll taxes than we used to spend on benefits administration. The numbers were exactly what they projected.

Logistics company

180 EMPLOYEES · $210K ANNUAL SAVINGS

Setup was two weeks. Savings hit the very first payroll. Our employees thanked us — that almost never happens with a benefits change.

Regional dental group

62 EMPLOYEES · $78K ANNUAL SAVINGS

I was skeptical until our CPA reviewed the documents. It's textbook Section 125. We should have done this years ago.

Manufacturing firm

245 EMPLOYEES · $232K ANNUAL SAVINGS

Questions

Answers, plainly.

Is this actually compliant? It sounds too good to be true.

Section 125 cafeteria plans have been part of the IRS code since 1978. They're used by Fortune 500 companies and small businesses alike. We deploy them with full plan documents, annual nondiscrimination testing, and ERISA-counsel review. Your CPA can verify every component.

Does this replace our existing health insurance?

No. The plan layers on top of whatever you currently offer. Your group health coverage, broker, and carrier relationships stay exactly the same. We're adding a pre-tax wrapper, not replacing anything.

What does it cost?

There is no cost to your business. Plan administration is funded by a small fraction of the FICA tax savings the plan generates. You only ever see net savings on your payroll tax bill.

How long does setup take?

Typically 10 to 14 business days from signed agreement to first reduced-tax payroll. We integrate with all major payroll providers — ADP, Gusto, Paychex, QuickBooks, Rippling, and others.

What if we already have a Section 125 plan?

Many businesses have an outdated Premium Only Plan (POP). We expand it into a full preventative wellness 125 — typically tripling the FICA savings without disrupting existing benefits.

Why isn't my CPA telling me about this?

CPAs file taxes — they generally don't sell or set up benefits plans. Brokers sell insurance — they're not tax-code specialists. Section 125 lives in the gap between these two professions, which is why it's so frequently underutilized despite being a 47-year-old IRS regulation.

Take the next step

Stop overpaying. Start reclaiming.

A 15-minute call is all it takes to know exactly what you've been leaving on the table.

Or run the numbers first

Cut $1,000 inpayroll taxes per employee.