The FICA Savings Program

As healthcare costs rise and competition for talent increases, businesses are seeking smarter ways to offer better benefits without driving up expenses. The FICA Savings Program, offered through IG Business Advisors, provides a powerful solution: it reduces employer payroll taxes while simultaneously giving employees additional wellness benefits at no cost.

Here’s an in-depth look at how the program works and what makes it such a strategic advantage for modern employers.

What Is the FICA Savings Program?

The FICA Savings Program uses an IRS-compliant pre-tax benefit structure that allows a portion of employee wages to be reclassified as contributions to a qualified wellness plan. This approach reduces the employee’s taxable wage base — which in turn lowers the employer’s FICA tax liability.

Unlike traditional benefit add-ons that cost employers money or reduce employees’ net pay, this program is designed so both parties gain without extra spending.

How the Program Works

1. A Portion of Employee Wages Is Redirected Pre-Tax
   Employees agree to contribute a small portion of their compensation into a wellness benefits plan via pre-tax payroll deductions.

2. Employee Take-Home Pay Remains the Same
   The program’s structure ensures that employees do not experience a reduction in net pay — meaning they receive additional benefits at no personal cost.

3. Employer FICA Costs Decrease
   Because FICA taxes are calculated on lower taxable wages, employers save on Social Security and Medicare taxes — often totaling $1,100+ per W-2 employee each year, depending on the workforce.

4. A Comprehensive Wellness Plan Is Added
   Employees gain access to benefits such as telemedicine, virtual mental health support, wellness coaching, preventive health tools, and prescription resources. These services layer on top of existing major medical insurance — nothing needs to be replaced or removed.

5. Full Compliance & Smooth Implementation
   IG Business Advisors handles administration, eligibility, compliance, onboarding, and integration so employers can adopt the program with minimal disruption.

Benefits for Employers

1. Substantial Payroll Tax Savings

The biggest advantage is the reduction in employer-paid FICA taxes. Savings accumulate across every eligible employee — often resulting in tens or hundreds of thousands of dollars annually for mid-sized companies.

2. Enhanced Benefits at Zero Additional Cost

Traditional benefit upgrades require employer spending. With this program, businesses can offer a richer benefits package without increasing premiums or HR burden.

3. Stronger Employee Retention & Recruiting

Employees value wellness support, telehealth access, and cost-free healthcare tools. When they receive these at no extra cost and with no change to their paycheck, job satisfaction naturally rises.

4. Seamless Integration With Existing Health Coverage

The program does not replace major medical insurance. Instead, it enhances it, making it easy for companies to adopt without changing providers or disrupting current benefits.

5. Compliance Confidence

The plan is built to comply with IRS and ACA guidelines, reducing risk while offering financial advantage.

Benefits for Employees

1. No Reduction in Take-Home Pay

Employees participate without any loss in net wages — a major advantage over traditional benefit adjustments.

2. Access to Valuable Zero-Cost Healthcare Tools

Benefits typically include:

• 24/7 telehealth

• Virtual primary care

• Mental health and counseling

• Preventive care and assessments

• Health coaching

• Prescription savings resources

• Lifestyle and wellness programs

These services often reduce the need for costly urgent care or office visits.

3. Complements, Not Replaces, Existing Insurance

Employees retain their existing major medical coverage. The wellness plan simply expands their access to care.

4. Better Overall Health Support

The program is focused on improving health outcomes, convenience, and proactive care — helping reduce stress and improve quality of life.

Why Employers Are Turning to This Program

Businesses are under pressure to offer better benefits while controlling rising costs. The FICA Savings Program provides a rare opportunity to achieve both:

• Reduced employer expenses

• Improved employee satisfaction

• Enhanced wellness benefits

• No added cost to implement

This is why the program has gained traction among small businesses, mid-sized companies, and large employers alike.

Conclusion

The FICA Savings Program is a powerful tool for today’s employers. It lowers payroll taxes, strengthens benefits, improves retention, and provides employees with valuable wellness services — all without increasing costs or altering existing insurance coverage.

For businesses looking for a compliant, efficient, and impactful solution to rising benefit expenses, this program offers a clear, win-win opportunity.

Contact us to learn more about the FICA Savings Program today!