Fiscorex LLC | Section 125 & 105 Plan Administration
Section 125 & 105 Plan Administration

Payroll savings that survive an audit.

Fiscorex designs and administers IRS-compliant cafeteria plans that lower FICA liability for mid-market and enterprise employers — built on standard, time-tested rules, not the cash-back schemes the IRS flagged in CCA 202323006.

Fiscorex · Savings Estimate
Ref. §125–01
$800+ / employee / yr
Average employer FICA reduction for qualifying plans of 500+ employees.
Plan type§125 Cafeteria + §105 MERP
Cash-back structureNone — not used
Nondiscrimination testingAnnual
DocumentationAudit-ready vault
IRS · DOL COMPLIANT · SECTION 125 · SECTION 105 ·
$800+
Average annual FICA savings per enrolled employee
500+
Minimum employer headcount for a qualifying plan
0 cash-back
Structured entirely on standard §125 / §105 rules
Services

Everything a compliant plan requires, administered end to end.

From initial design through annual testing — one team, one audit trail.

§ 125

Plan Design

Cafeteria plan architecture built around your wage bands, existing benefits stack, and headcount — engineered to hold up under IRS review from day one.

§ 105

Enrollment & Funding

Employee elections, pre-tax contribution routing, and medical reimbursement funding, handled end to end so payroll teams stay out of the weeds.

Audit

Compliance & Reporting

Annual nondiscrimination testing, plan documentation, and a standing, indexed audit trail available on demand for any regulatory body.

About Fiscorex

Your compliance partner, not your cash-back vendor.

Fiscorex specializes in designing and administering IRS-compliant Section 125 cafeteria plans that unlock meaningful FICA savings for employers while delivering real healthcare value to employees.

We built our practice on the rules that were already sound — long before the IRS started scrutinizing wellness cash-back schemes — so every dollar saved is fully defensible under examination.

Read our approach
01
Regulatory-first designEvery plan is built to standard IRS Section 125 / 105 mechanics — no novel interpretations.
02
Audit-ready by defaultDocumentation, amendments, and testing results are indexed and retrievable on request.
03
Boston-based, nationally licensedHeadquartered in Massachusetts, administering plans for employers across the country.
How It Works

The legal mechanics behind Section 125.

A proven statutory framework, applied in the same order for every plan we administer.

01

Section 125 Cafeteria Plan

Employees elect qualified benefits pre-tax, reducing gross wages subject to FICA for both employer and employee.

02

Section 105 Medical Reimbursement

Pre-tax dollars fund actual healthcare expenses, meeting IRS requirements for excludable benefits rather than taxable cash.

03

Nondiscrimination Testing

Plans undergo annual testing to confirm they do not disproportionately favor highly compensated or key employees.

04

Digital Compliance Vault

All plan documents, amendments, and audit trails are held in a secure, indexed repository for instant regulatory retrieval.

High-Impact Industries

Where compliant payroll reclassification delivers the most.

Workforce structure determines savings potential — these verticals see it first.

Vertical 01

Manufacturing & Logistics

Compounds savings by lowering both standard FICA obligations and heavily burdened workers’ comp classifications.

Vertical 02

Construction & Skilled Trades

A high-value recruitment and retention lever for field workers, while mitigating steep trade-based payroll liabilities.

Vertical 03

Healthcare & Hospitality

Lowers operating costs across high-turnover workforces with instant-access virtual care, at no added benefit budget.

Frequently Asked

Questions we get before signing.

The IRS rightfully targeted programs that paid tax-free cash rewards to employees for basic wellness activities. Fiscorex does not do this. Our program uses pre-tax dollars strictly to purchase real, comprehensive healthcare benefits — funding actual medical care and plan premiums rather than cash payouts — so it complies fully with standard, time-tested Section 125 and Section 105 rules.

Because we don’t rely on aggressive cash-back structures, your risk profile matches that of any standard corporate Section 125 premium-only plan. Our Digital Compliance Vault holds all required plan documentation, amendments, and nondiscrimination reports for seamless verification by any regulatory body.

Most employers move from initial assessment to a live plan within one full payroll cycle. Timeline depends on plan complexity, existing benefits integration, and enrollment scheduling.

Get In Touch

Schedule a confidential compliance assessment.

Tell us about your workforce and current benefits structure — we’ll return a defensible savings estimate before you commit to anything.

Phone(617) 682-9495
OfficeBoston, Massachusetts
Intake · Compliance Assessment
Ref. §125–IN
© 2026 Fiscorex LLC. All rights reserved. Boston, MA · (617) 682-9495 · [email protected]