Section 125 Plans for Landscaping Companies
For employers with 50+ employees
Landscaping companies are one of our largest groups of clients. Field crews are hourly, headcount rises in peak season, and good crew members are hard to keep. A Section 125 plan lowers payroll taxes on every crew member on payroll.
Why Section 125 Fits Landscaping
- Savings follow your headcount: Savings are calculated on every payroll, so in peak season, when more crew members are on payroll, you save more.
- Crew retention: Higher take-home pay with the same gross pay gives crew members a reason to come back next season.
- Benefits for field crews: Unlimited virtual care with no copay, $0-copay generic prescriptions and hospital indemnity cash benefits for covered hospital stays.
- No enrollment drive: Every employee is automatically enrolled and free to opt out, including new seasonal hires.
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 Landscaping
| Workforce | At $650/employee | At $850/employee |
|---|---|---|
| 50 employees | ~$32,500/yr | ~$42,500/yr |
| 75 employees | ~$48,750/yr | ~$63,750/yr |
| 150 employees | ~$97,500/yr | ~$127,500/yr |
Estimates use $650–$850 in employer payroll tax savings per employee per year. Calculate your own number.
Getting Started
Note: the hospital indemnity benefit is not workers’ compensation insurance. It supplements health insurance, and your workers’ comp coverage stays in place.
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 a landscaping company?
Yes. Landscaping companies are among our largest client groups. The program requires at least 50 employees.
Does it work with seasonal crews?
Yes. Savings are calculated on every payroll, so they follow your headcount through the season.