HOW IT WORKS
A Simple, Compliant Way to Add Benefits Without Expanding Your Budget
Zoop Benefits uses a compliant Section 125 strategy that helps employers lower
payroll tax liability while providing employees meaningful supplemental coverage.
Zoop Benefits uses a compliant Section 125 strategy that helps employers lower payroll tax liability while providing employees meaningful supplemental coverage.
The Foundation: Section 125
Zoop is built on a compliant Section 125 cafeteria plan, which enables
pre-tax reallocation for employees. This structure allows:
Employees to shift a portion of income pre-tax
Employers to reduce payroll tax liability
Net-positive savings in many organizations
Smooth compatibility with all major carriers
Supplemental benefits with no disruption to the core health plan
Most employers end up net-positive financially, while employees
gain more care access at lower cost.
Most employers end up net positive financially, while employees gain more care access at lower cost.
Employer Benefit Flow
Here’s how the employer side works:
Premiums keep rising. Budgets don’t. And leaders are forced into a painful choice:
1. Pre-tax reallocation
is set up
Employees shift a portion of their income into the plan pre-tax under the Section 125 structure.
2. Employer payroll tax
liability decreases
This creates employer-side savings, often exceeding the PEPM cost of the supplemental benefits.
3. Employer becomes
net-positive
Most organizations 25+ employees see measurable payroll tax savings.
4. Reduced utilization on
existing insurance
Employees now have affordable access to care services, reducing plan strain.
5. Stabilized
long-term costs
As utilization decreases, medical premiums experience less pressure over time.
6. No change to take-home
pay or core benefits
Employees keep the same net pay and benefits while gaining access to added care services
As utilization decreases, medical premiums experience less pressure over time.
Employee Benefit Flow
While employers gain tax savings, employees gain
better access to care. Employees receive:
Premiums keep rising. Budgets don’t. And leaders are forced into a painful choice:
Mental Health Counseling
Health Concierge Navigation
24/7 Virtual Primary Care & Urgent Care
Labs through Quest Diagnostics
Prescription Access + Discounts
Guaranteed-Issue Whole Insurance
Portable Coverage with Cash Value
And the best part: Many common services come with no out-of-pocket cost.
Implementation Timeline
The process is simple and fast.
Week 1: Compliance Setup
Section 125 documentation, plan structure, employer onboarding.
Week 2-3: Employee Education + Enrollment
Our support team leads communication, Q&A, and guided enrollment.
Week 4: Go Live
Supplemental benefits activate. Employee services begin immediately.
Month 2+: Employer Sees Savings
Payroll tax reductions appear in pay cycles, creating net-positive benefit positioning.
What Makes Zoop Different
High-value benefits they actually use:
No disruption to existing health insurance
No employer budget increase
Works with brokers
Measurable tax savings
High-perceived value for employers
Reduces utilization on the core medical plan
Zoop is a modern, cost-efficient way to expand benefits and reduce financial pressure.
See if Your Company Qualifies
Confirm eligibility.