Zero cost to you. Real money in your employees' pockets.
The Champ Plan uses an IRS-approved tax strategy that's been hiding in plain sight for decades. Here's exactly how it works — step by step.
The core idea in one sentence
By routing a small pre-tax deduction through an IRS Section 125 Cafeteria Plan, both the employer and employee pay less in payroll taxes — and the savings are large enough to fund a full benefits package with money left over.
The math
The tax savings math
Here's what actually happens to a typical employee's paycheck
Pre-tax deduction applied
A monthly pre-tax deduction is applied to the employee's paycheck through the Section 125 plan. This reduces their reported taxable wages — not their actual take-home pay.
Taxable wages drop
Because taxable wages are lower, the employee pays less in federal income tax, state income tax, and FICA (Social Security + Medicare). The employer also pays less FICA on those wages.
Post-tax benefit added back
A post-tax benefit is added back to the employee's net pay. After the math settles, the employee takes home more money than before — up to $300 more per month.
Employer keeps the FICA savings
The employer's share of FICA savings — typically $573.60 or more per participating employee per year — covers the cost of the program entirely. The net cost to the employer is zero.
$573.60+
Employer saves per employee / year
$300/mo
More take-home pay for employees
$0
Net cost to the employer
For employers
What you actually have to do
Send your employee census
A simple spreadsheet of your W-2 employees and their wages. That's all we need to calculate your exact savings.
Connect with your payroll
The plan integrates directly with your existing payroll system. No new software, no manual calculations.
Communicate the benefit to employees
We provide ready-to-use materials to explain the plan to your team. Enrollment is voluntary and takes minutes.
Collect your savings every month
Once live, the FICA savings accumulate automatically each pay period. Most employers see the plan pay for itself within the first month.
What employees do — and what they get
One 5–10 minute activity per month
To unlock their benefits each month, employees complete a brief health engagement activity — a short wellness check-in or health survey. This satisfies the IRS requirement for the pre-tax benefit structure and keeps the plan fully compliant.
What employees receive
IRS compliance
Why this is 100% legal — and battle-tested
IRS Tax Code Section 125
Section 125 has been part of the federal tax code since 1978. It was specifically designed to allow employers to offer pre-tax benefits. The Champ Plan is built entirely within this framework.
Never had a single audit finding
The Champ Plan has been reviewed by former IRS corporate auditors and has never had a single audit finding. It is designed within the letter of the law — not around it.
Trusted by 10,000+ companies
Arby's, Piggly Wiggly, Harley-Davidson, Maaco, and thousands of other businesses across the country have implemented the Champ Plan without issue.
See your exact numbers in 15 minutes
Send us your employee census and we'll calculate your precise annual savings before your info session. No obligation, no pressure.