Section 125 Plans for Assisted Living and Senior Care
For employers with 50+ employees
Assisted living and senior care facilities are one of our largest groups of clients. Round-the-clock staffing means large hourly payrolls, and every point of payroll tax you save matters.
Why Section 125 Fits Assisted Living and Senior Care
- Large hourly staff: Aides, nurses, dietary, housekeeping and maintenance staff all count. Savings are per employee, across every department.
- Multiple facilities: Operators with several facilities can count employees across their locations to meet the 50-employee minimum.
- Retention in a tight labor market: Higher take-home pay and no-copay virtual care help you keep staff without raising wages.
- Supplements your current plan: The program sits on top of your existing health plan and does not replace it.
What the Program Delivers
- Employer savings: most employers save $650–$850 per employee per year in payroll taxes
- Employee take-home pay: typically rises about 4–6%, with the same gross pay
- Cost: no setup fee, no minimum contract, and no out-of-pocket cost — the fee is paid from the savings
- Enrollment: every employee is automatically enrolled and free to opt out
- Existing coverage: your current health plan stays exactly as it is
Estimated Annual Savings in Assisted Living and Senior Care
| Workforce | At $650/employee | At $850/employee |
|---|---|---|
| 50 employees | ~$32,500/yr | ~$42,500/yr |
| 150 employees | ~$97,500/yr | ~$127,500/yr |
| 400 employees | ~$260,000/yr | ~$340,000/yr |
Estimates use $650–$850 in employer payroll tax savings per employee per year. Calculate your own number.
Getting Started
The program works with all major payroll systems. If your facilities use a PEO, see how it works with a PEO.
Setup takes 30–60 days in five steps, with no setup fee and no minimum contract. The program requires at least 50 employees and is available in 40 states (see state availability).
Frequently Asked Questions
Does a Section 125 plan work for assisted living facilities?
Yes. Assisted living and senior care operators are among our largest client groups. The program requires at least 50 employees across your locations.
Do all staff qualify, or only caregivers?
Savings are per employee on payroll, so staff in every department count.