FAQ for Section 125 Encompassing Health Program for Fica Tax Savings

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On average, business owners can save $700 to $800 per employee annually on their FICA taxes.

There are no upfront costs for the program and there will only be an admin fee charged on the actual savings generated for your company.

FICA taxes are employer and employee contributions (7.65%) to fund Social Security and Medicare. Section 125 programs, like the FICA Tax Savings Program, can help mitigate these taxes. 

The Encompassing Health Program is a fully insured fixed indemnity program utilizing Section 125 and the Affordable Care Act, offering preventative and disease management benefits with financial rewards for both employers and employees. It is currently the only Section 125 program both approved by the department of insurance and an A+ insurance carrier.

A lot of our clients who are big corporations were already leveraging the section 125 tax code to a certain degree. But using a Section 125 fully insured fixed indemnity insurance product, to get significant FICA tax reductions is different. Even McDonald’s was able to gain additional FICA tax savings on top of their existing Section 125 plan by implementing our plan, Encompassing Health. This is possible by using a combination between the Section 125 Plan and the Affordable Care Act. Book a call below to find out more about how we can possibly help you save more on FICA taxes. 

Encompassing Health does not disrupt, interfere or change any existing benefits and insurance programs that are already implemented. It only enhances the benefits that are already in place. 

The biggest misconception is that it sounds too good to be true, because both the employer and the employee win by doing it. However, when our clients do their due diligence on who supports the program, who writes it, the approvals through the Department of Insurance, etc, it passes all the checks. The program is supported by a reputable A+ – rated carrier, Crum & Forster, established since 1822.

The onboarding process is completely streamlined and handled by our team. We have automations with all big payroll software systems and have facilities to code custom automations for corporates with unique internal payroll software systems.  
typically taking three to five weeks of pre-educational setup, involving coordination with payroll representatives and employee education

The program has seen success across various industries, including franchises like McDonald’s and Culver’s, resulting in significant savings to the bottom line. 

While the program is valuable across industries, it tends to have a significant impact on blue-collar sectors, such as construction, hospitality, and nursing homes.

Business owners should ensure the program is backed by a carrier, approved by the Department of Insurance, and operates as a fully insured fixed indemnity program. 

The company’s carrier and due diligence team continually monitor changes in tax laws, ensuring the program remains compliant with Section 125 and the Affordable Care Act. 

Ongoing support is minimal, with HR-related queries directed to the program team, and on the payroll side, employers can easily manage the process, aided by automation. 

Very few employers decline, and reasons are usually situational, such as undergoing internal changes. The program offers substantial savings and benefits with a high adoption rate. 

Interested business owners can book a call with Tanner and his team by clicking the link provided in the description for further information and assistance. 

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