Employee Tax Savings
Keep More of What You Earn — Before Taxes Even Touch It
Michele also works with small businesses and their employees to set up tax-advantaged benefit plans — smart, simple strategies that reduce what everyone pays in taxes without changing what you do.
What Is This?
Pre-Tax Benefits That Work for Employers and Employees
Most people don't realize there are IRS-approved ways to reduce the taxes taken out of every paycheck — without any complicated investing or financial tricks.
Through Section 125 Cafeteria Plans and other pre-tax benefit structures, employees can pay for certain benefits — like health insurance, dental, vision, and more — using dollars that have never been taxed. That means less money going to the IRS, and more staying right where it belongs: in your hands.
Michele will walk you through exactly how it works, whether you're a business owner looking to offer better benefits or an employee wondering if your company qualifies.
Core Protection
Protect employees from their deductibles and fill the gaps from their Major Medical Plan
- Reimburse employees for their maximum out of pocket expenses.
- Lower utilization on their group health plan, which in turn would lower renewal premium rates.
- Save the district on FICA taxes, approximately $300–$500 per W-2 employee.
- Increase employee take-home net pay.
- Doesn't involve replacing or finding different current benefits.
- Accomplish all this at no net cost to the district or employee.
Why It Matters
Real Savings for Real People
Reduce Payroll Taxes
Employees contribute pre-tax dollars toward qualified benefits, reducing the taxable wage base — meaning both the employee and the employer pay less in FICA taxes.
Lower Employee Tax Burden
When employees pay for benefits with pre-tax dollars, their taxable income goes down — putting more money back in their pockets every single paycheck.
Employer Savings Too
For every dollar an employee redirects pre-tax, employers save on their share of payroll taxes — a win-win that can add up significantly across an entire workforce.
Better Benefits, Happier Teams
Section 125 plans make it easier for small businesses to offer competitive benefits packages that attract and retain good employees — without a big budget.
Plan Options
Flexible Structures to Fit Your Business
Section 125 Cafeteria Plans
A foundational plan that allows employees to choose from a menu of pre-tax benefit options — including health insurance premiums, FSAs, and dependent care.
Health Insurance Premium Conversion
Employees pay their portion of health insurance premiums with pre-tax dollars, immediately reducing their taxable income.
Flexible Spending Accounts (FSA)
Employees set aside pre-tax dollars for qualified medical or dependent care expenses, reducing their tax liability throughout the year.
Supplemental Benefits
Cancer, critical illness, accident, and dental/vision plans can often be structured to run through a Section 125 plan on a pre-tax basis.
Let's Talk
Curious If This Could Work for You?
Whether you're a business owner, an HR manager, or an employee who just wants to understand your options — Michele is happy to have that conversation. No obligation, just answers.