Smarter Employee Benefits
Simple, Compliant, Proven:
Unlock savings and wellness for your business and a re-tax basis.
What is Section-125?
A Section 125 Plan is a tax-advantaged benefit plan that lets employees pay certain expenses on a pre-tax basis.
How Our Program Works
Compliant by Design
Fully aligns with IRS regulations for Section 125 plans.
All-in-One Technology
Employees get access to personalized wellness tools.
Employee Benefits
Employees get a personalized app experience, preventive care tools, easy-to-use wellness rewards, and increased take-home pay.
Tax Savings
Maximize payroll tax savings for both employers and employees.
No Disruption
Enjoy seamless integration. No need to change your current plan.
Section 125 Code Foundation
Leverages tax codes 105, 106, and 213(d) to structure health benefits pre-tax.
Frequently Asked Questions
What type of benefits are included in the Capstone Plus Program?
Benefits include access to wellness and preventive care services, wellness incentive payments for participation, and health-related activity tracking. Some benefits may be received tax-free if they meet IRS criteria for qualified medical care.
Are the benefits received through the Capstone Program taxable?
Cash payments for wellness participation are taxable.
Employer contributions to qualified plans (HSA, FSA, etc.) may be non-taxable.
Excess benefits beyond unreimbursed medical expenses may be taxable and reportable by the employee on their personal tax return.
How is the wellness portion treated under IRS rules?
The wellness portion is structured as a fixed-indemnity accident and health plan under Section 106, which must resemble insurance: risk must be shifted, and premiums must be the same for all participants, regardless of usage.
Can any employee enroll in the Capstone Plus Program?
Only common law employees are eligible. They may elect to participate and pay for the wellness portion of the Program using pre-tax dollars through a Section 125 cafeteria plan.
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