See Section 125 on your pay stub?
Here's what it's worth.
Section 125 is a federal tax structure that gives qualifying employees about $72 more per paycheckat zero cost — to you or to your employer. If your company isn't enrolled, you can use the tool here to see what you'd gain, then download a one-page request to hand to your owner or HR director.
Paycheck Decoder
See your raise · download the HR Request Template · no email required
A 47-Year-Old Federal Law That Most Employees Have Never Had Explained to Them
When you see Section 125, CAF 125, or Cafeteria Plan on a pay stub, it refers to the part of the IRS code that lets employers offer pre-tax benefits — health insurance, dependent care, FSAs, and certain wellness programs — without that money counting as taxable income.
The Preventive Care Section 125 program calculated above goes a step further: in addition to the standard pre-tax structure, it includes a HIPAA-compliant participatory wellness component that returns a monthly post-tax wellness reward to your paycheck. The combined effect leaves you with about $72 more per paycheck without any change to your gross salary.
The program is grounded in IRS Revenue Ruling 69-154 and IRC §§ 125, 105, and 106 — and was independently reviewed in 2025 by HitesmanLaw P.A. and CBIZ Advisors LLC. Both confirmed compliance.
For your employer
Net $681.60 saved per employee per yearin FICA taxes (after the program's admin fee). Workers' Comp premiums also drop because they're calculated on taxable payroll. A 50-employee company nets ~$34,000/year.
For you
~$72 more per paycheck — automatically. Plus 24/7 telemedicine, 400+ free generic medications, dental savings up to 60%, mental health counseling for the whole household. Zero out-of-pocket cost.
Your one move
Download the HR Request Template above and hand it to your owner, HR director, or office manager. They can take it to their CPA before deciding anything — exactly as the CPAs and attorneys in our case studies did.
→ See the legal & accounting proofVerified 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.
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.
CBIZ Advisors LLC
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.
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 on Your Pay Stub — Explained
Want the deeper explanation? See the full compliance authority page →
Find Out Your Number.
Free. No Pitch. Just Math.
Verified: CBIZ Advisors LLC (Aug 2025) · HitesmanLaw P.A. (May 2025)
$500K legal protection per enrolled employer · IRS Section 125 · Federal law since 1978