How FICA Tax Savings Work for Employers | SMTM

Question 1

Is this program IRS compliant?

Accepted Answer

Yes, 100%. The FICA incentive program is fully authorized under the IRS tax code. Every strategy we implement is documented, compliant, and defensible in the event of an audit.

Question 2

What does it cost?

Accepted Answer

There is no net cost to your company. Our fee is performance-based — we only earn when you save. The savings you receive will always exceed our fee.

Question 3

How long does implementation take?

Accepted Answer

Most businesses are fully up and running within 2–4 weeks. Our team handles the heavy lifting so your HR and payroll teams experience minimal disruption.

Question 4

How much can we save?

Accepted Answer

The average savings is $639 per employee per year. A company with 50 employees could save over $31,000 annually. A company with 200 employees could save more than $127,000 every year.

Question 5

Do we need to change our payroll provider?

Accepted Answer

No. Our program works alongside your existing payroll system. You keep your current provider and processes — we simply optimize the tax treatment within that structure.

Question 6

This sounds too good to be true?

Accepted Answer

We understand, it's only natural to question something that offers substantial benefits with no net cost to you or your employees. However, our program is a legitimate health program focused on prevention and it is possible through a little known Affordable Care Act (ACA) regulation and the IRS Section 125 Cafeteria Plans. This is what makes this program possible and available to businesses and their W-2 employees at no net cost.

Question 7

Does my business get any benefits from offering this plan?

Accepted Answer

Absolutely yes! In addition to taking care of your employees, increasing retention, reducing sick days and making your company more attractive to new hires, you will see an average savings of $600 per employee per year on your FICA tax bill. Additionally, you could also save on workers comp costs.

Question 8

Wouldn't companies have tax advisors that are helping them with this?

Accepted Answer

Our IRS-compliant, no-net-cost health program creates FICA tax savings for both employers and employees by leveraging pre-tax deductions through a specially structured wellness benefit. While fully compliant with IRS regulations, these programs are highly specialized and often misunderstood. It's important to recognize that most CPAs and HR professionals are not equipped to fully evaluate these programs. Unless they have specifically studied the relevant tax codes, legal opinions, and IRS guidance, their advice may be incomplete or even incorrect. For this reason, we strongly recommend that financial and benefits decisions around this program be guided by professionals who are experienced in this specific area — not generalists.

Question 9

Will this health plan affect our existing health insurance coverage?

Accepted Answer

No, our program is designed for seamless integration with your current health benefits program or as a stand-alone plan if you are not offering healthcare to your employees.

Question 10

Who qualifies for this plan?

Accepted Answer

Businesses with a minimum of 10 W-2 employees, who work full-time (at least 30 hours per week), and who earn a minimum of $26,000 annually.

Question 11

Are my employees' family members covered under this health program?

Accepted Answer

Yes, eligible family members of enrolled employees also have access to these health program benefits.

Question 12

Do employees need to change their current doctors?

Accepted Answer

No. If they currently receive care and choose to remain enrolled in their current health plan, they do not need to make any changes. If employees do not have current medical coverage, the MEC (Minimal Essential Coverage) plan included will allow them to see any doctor and use any Urgent Care facility in the Private Health Care System PPO network (PHCS), one of the largest PPO networks in America.

Question 13

Are there any out-of-pocket costs for my employees to use these benefits?

Accepted Answer

No, there are no costs for service, no claim forms, no co-pays and no deductibles.

Question 14

Can we enroll any time?

Accepted Answer

Your initial enrollment will set an enrollment period for your company, which will be scheduled on the 1st to 10th day of the month after you accept the program. However, if you accept the program after the 15th of the month, your enrollment period will be scheduled for the 2nd month following. New employees can join the plan as hired.

Question 15

Does this health plan meet the definition of Minimum Essential Coverage (MEC)?

Accepted Answer

Yes.

Question 16

Are there any use requirements for my employees?

Accepted Answer

Employees need only use one service each year to keep their tax deductible status. Every month, employees will receive push notifications, messages, text reminders and emails providing them with important information about their plan benefits and information intended to help improve their health.

Question 17

Can employees access benefits throughout the United States?

Accepted Answer

Yes, our program's virtual healthcare services are accessible from anywhere in the United States.

Question 18

Are there any limits on the number of times an employee can use the plan services and benefits?

Accepted Answer

No, members can access their program services and benefits as frequently as needed with no annual limits.

Question 19

How are my employees enrolled? How do I enroll my business into this program?

Accepted Answer

The first step is to schedule your Discovery Call — this 15-minute Zoom goes over all the details, tax savings and benefits of our program. Contact your Solutions Advocate or fill out the form on this page and we will get your discovery call scheduled. These benefit tax savings are not retro-active, so don't delay — reach out now!

How It Works

Schedule a Discovery Zoom Meeting

Eligibility Assessment

Custom Savings Plan

Implementation

Start Saving

Who Is Eligible?

Frequently Asked Questions

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