A Payroll Strategy Built for Employers, Employees, and Trusted Advisors
The Section 125 Cafeteria Plan Calculator is an invaluable tool for employees and HR professionals alike, offering a clear estimation of tax savings from pre-tax benefits. By inputting annual salary, pre-tax benefit amounts, and tax rates, users can instantly see their total tax savings, FICA reduction, and the per-paycheck benefit. This clarity is crucial for financial planning, as pre-tax elections can significantly reduce an employee’s taxable income, directly boosting take-home pay by hundreds or even thousands of dollars annually, especially with 2026 health FSA limits reaching $3,400.
Legacy Tax & Resolution Services helps employers evaluate payroll-based savings strategies designed to potentially increase employee take-home pay, reduce employer payroll tax costs, and create meaningful value for CPAs, payroll companies, brokers, and referral partners.
Why Section 125 Plans Are Essential for Employee Compensation
Section 125 plans are a cornerstone of modern employee compensation, offering a strategic advantage for both employees and employers. For employees, these plans enable the payment of qualified benefits like health insurance premiums, Flexible Spending Accounts (FSAs), and Dependent Care FSAs with pre-tax dollars, effectively reducing their taxable income and FICA contributions. This means more take-home pay and greater affordability for essential benefits. For employers, offering a Section 125 plan can reduce their payroll tax burden (FICA and FUTA) and enhance their benefits package, making them more competitive in attracting and retaining talent. It’s a win-win strategy that optimizes tax efficiency for healthcare and dependent care expenses.
The Tax-Saving Logic of Cafeteria Plans
The core logic of a Section 125 Cafeteria Plan revolves around reducing an employee’s gross income before federal, state, and FICA taxes are calculated. This pre-tax treatment effectively shelters a portion of the employee’s earnings from taxation, leading to significant savings.
How We Serve You
For Employers
Maximize Benefits for Employees & Your Company 💼
What’s In It For Everyone?
Discover how your organization can create a win-win scenario that puts more money in employees’ pockets while potentially reducing your company’s tax obligations.
Key Benefits at a Glance
👥 For Your Employees
Take home more pay each paycheck
Access to valuable preventive care benefits
Greater overall compensation value
🏢 For Your Company
Potential reduction in matching FICA obligations
Opportunity to offer enhanced benefits packages
Improved employee satisfaction and retention
For CPAs & Referral Partners
💼 Payroll Savings Strategy: A Partner-First Approach
🎯 Overview
Deliver a differentiated payroll savings strategy to your clients — backed by a dedicated support team that handles every stage of the process, from presentation to ongoing management.
🌟 Core Value Pillars
1. 🏗️ Create New Company Value
Introduce innovative savings solutions that set your clients apart from competitors
Drive bottom-line impact through optimized payroll efficiencies
Position your clients as forward-thinking organizations that prioritize employee financial wellness
Build long-term, sustainable value beyond traditional benefits offerings
2. 🤝 Partner With Our Support Team
Full-cycle support — from initial analysis through implementation and beyond
Dedicated specialists handle:
📊 Data analysis & reporting
🖥️ Presentation preparation
⚙️ Implementation logistics
🔄 Ongoing process management
Your team stays client-focused while we handle the heavy lifting
3. 🚪 Open Doors With Confidence
Walk into every client meeting fully prepared
Leverage our proven frameworks and presentation tools
Differentiate your pitch with data-driven insights
Build credibility and trust faster with prospective clients
Not sure where to start?
📊 Step 1 — Estimate Your Company Savings
See exactly how much your organization could save with a personalized cost analysis
👁️ Step 2 — Review Employee Impact
Understand how this benefits eligible employees and what changes they can expect
$60–$120
Potential monthly employee increase in take-home pay.
$700- $900
Annual employer savings potential per employee. Actual result based on hours worked and employee eligibility
Managed
Implementation and ongoing support 24/7 around the globe
A Single Strategy. A Triple Win.
A well-crafted payroll strategy delivers on multiple fronts — driving value for employers, enhancing the employee experience, and opening meaningful doors for trusted advisors to deepen client relationships.