Understanding the FICA Savings Program

The FICA Savings Program offered through IG Business Advisors is designed to help businesses reduce payroll tax costs while giving employees access to valuable health and wellness benefits — at no additional cost to either party.

How the Program Works

The program uses a compliant IRS pre-tax structure that redirects a portion of employee wages into a wellness benefits plan. Because these contributions are pre-tax, the employee’s taxable wages decrease — which reduces the employer's FICA (Social Security + Medicare) tax liability.

Employees keep the same take-home pay, but now receive access to a suite of no-cost wellness services such as virtual care, mental health support, preventive care tools, and more.

Benefits for Employers

• Lower Payroll Taxes: Employers save an average of around $1,000+ per W-2 employee per year (varies by company).

• Stronger Benefits Package: Enhances your offerings without raising costs.

• Retention & Recruitment: Employees appreciate added wellness benefits with no pay reduction.

• Easy Integration: Works alongside existing major medical plans and requires no major HR changes.

Benefits for Employees

• No Change to Take-Home Pay: Net pay stays the same.

• Free Access to Wellness Services: Includes telehealth, mental health resources, preventive care tools and more.

• No Plan Disruption: This wellness plan is added on top of existing insurance coverage.

• Better Long-Term Health Support: Provides convenient access to care that promotes healthier lifestyles.

Final Takeaway

The FICA Savings Program helps businesses reduce tax costs while giving employees valuable wellness benefits — all without changing existing health insurance or increasing expenses. It’s a simple, compliant way for companies to boost employee satisfaction and lower overall payroll costs.

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