Section 125 Plans for Construction Companies
For employers with 50+ employees
Construction companies are one of our largest groups of clients. Large hourly field crews and competition for skilled workers make a Section 125 plan a strong fit: lower payroll taxes for you, higher take-home pay for your crews.
Why Section 125 Fits Construction
- Large payrolls: Field crews, operators and site staff all count. Savings are per employee, so larger crews save more.
- Competing for skilled workers: Higher take-home pay with the same gross pay helps you hire and keep skilled trades without raising wages.
- Benefits crews can use: Unlimited virtual care with no copay, $0-copay generic prescriptions and hospital indemnity cash benefits for covered hospital stays.
- Project-based headcount: Savings are calculated on every payroll, so they follow your headcount as projects start and end.
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 Construction
| Workforce | At $650/employee | At $850/employee |
|---|---|---|
| 50 employees | ~$32,500/yr | ~$42,500/yr |
| 100 employees | ~$65,000/yr | ~$85,000/yr |
| 250 employees | ~$162,500/yr | ~$212,500/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 construction company?
Yes. Construction companies are among our largest client groups. The program requires at least 50 employees.
Does it replace workers’ compensation?
No. The hospital indemnity benefit is not workers’ compensation insurance. Your workers’ comp coverage stays in place.