Increase Profits by $1,000 Per Employee Per Year — No Net Cost

A fully insured, IRS-compliant benefits plan that boosts cash flow and provides employees with valuable insured benefits.

Fully Compliant | Proven Results | Trusted Nationwide

How It Works

Step 1

Payroll Analysis

We run a payroll analysis to uncover hidden FICA savings — typically $700–$1,000 per employee, per year.

Step 2

Employee Enrollment

Employees are enrolled online, gaining valuable benefits with no negative impact on their net take-home pay.

Step 3
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Guaranteed Savings

Employers reduce payroll taxes (fully IRS-compliant), while employees receive additional benefits with no reduction in their net take-home pay.

Why Employers and Employees Value It

Employer Benefits

  • Save $700–$1,000 per employee annually in payroll tax reductions
  • Zero Net Cost — funded entirely through FICA savings
  • Seamless integration with existing payroll and benefits
  • Fully compliant with IRS Code and regulations
  • Supported by official IRS memorandums and Chief Counsel Advice (CCA)
  • Minimal HR involvement for setup — no HR time required after the first payroll

Employee Benefits

  • 24/7 telemedicine access for the entire household
  • Preventive wellness screenings and lab tests
  • Fixed indemnity benefits (hospital, accident, and preventive care reimbursements)
  • Mental health counseling and support services
  • Prescription savings with access to a generic formulary list
  • No negative impact on net take-home pay

Frequently Asked Questions

How does this program save us money?

Eligible wages are reallocated pre-tax to fund insured wellness and fixed indemnity benefits. This lowers employer FICA on those wages, typically producing $700–$1,000 per employee per year in savings (results vary by payroll mix and participation).

Is this IRS-compliant and legal?

Yes. The structure is fully compliant with IRS Code and regulations and is supported by official IRS memorandums and Chief Counsel Advice (CCA). The plan is implemented and administered by a licensed TPA with complete documentation and audit-ready records.

What part of the IRS Code is this based on?

This is a cafeteria plan arrangement under Internal Revenue Code Section 125, using insured wellness and fixed indemnity benefits. The compliance framework aligns with IRS regulations and is supported by relevant IRS memorandums and Chief Counsel Advice (CCA).

Does this replace our existing medical plan?

No. This supplements your current benefits. There is no change to your major medical plan or existing insurance arrangements.

How much HR/Payroll effort is required?

Minimal HR involvement for setup — no HR time required after the first payroll. The TPA handles onboarding, compliance, employee education, and ongoing administration. The plan integrates with major payroll systems.

How are employees enrolled? Can they opt out?

Employees are enrolled digitally with clear notices. Opt-out is available before the start date and for 30 days after launch, and again at open enrollment or a qualifying life event. There is no negative impact on employees’ net take-home pay.

Are there any out-of-pocket costs?

No. There are no out-of-pocket costs to the employer or employees. Program costs are covered by payroll tax savings.

What benefits do employees receive?
  • 24/7 telemedicine access for the entire household
  • Preventive wellness screenings and lab tests
  • Fixed indemnity benefits (hospital, accident, and preventive care reimbursements)
  • Mental health counseling and support services
  • Prescription savings with access to a generic formulary list
  • No negative impact on net take-home pay
What types of companies use this strategy?

Employers across restaurants, retail, logistics, healthcare, auto, distribution, and non-profits. Results scale with eligible headcount and wage distribution.

What risks should we be aware of?

As with any tax-advantaged benefit, there is potential IRS scrutiny. The key risks are improper administration or lack of documentation. These risks are minimized through:

  • Grounded in IRS authority — fully aligned with IRS Code, regulations, memorandums, and Chief Counsel Advice (CCA)
  • Licensed TPA administration — the plan is designed, implemented, and operated by a third-party administrator, not by your HR staff
  • Audit-ready documentation — all payroll adjustments, notices, and elections are maintained to withstand IRS or DOL review
  • Employee protection — no reduction in net take-home pay

With these safeguards, compliance risk is minimized to near zero while preserving the full financial upside.

Ready to See Your Potential Savings?

Request a custom estimate or book a 5-minute walkthrough to learn how PTE Group can unlock new profit for your business with no disruption to your current benefits.

Request My Free Estimate