How the Preventive Care Benefits Program Works
The Preventive Care Benefits Program uses a Self Insured Medical Reimbursement Program (SIMRP) structure combined with a Section 125 cafeteria plan to deliver comprehensive preventive care benefits while generating employer FICA tax savings. Here is exactly how the mechanism works, step by step.
Three Steps to Savings
Implementation takes just 2-3 weeks from start to finish.
Schedule a Discovery Call
Meet with a benefits advisor to review your current payroll structure and determine eligibility. We analyze your workforce and project your exact FICA savings.
Enroll Your Employees
Our team handles all plan documentation, compliance filings, Section 125 plan setup, and employee communication. Your only task is a simple payroll code addition.
Start Saving
Begin realizing FICA tax savings on the very next payroll cycle. Employees immediately access their full suite of preventive care benefits.
The FICA Savings Mechanism
Why Employee Pay Stays the Same
The most common question about the program is how employees can receive benefits without a reduction in take-home pay. The answer lies in the pre-tax nature of the deduction:
- 1.The $1,220 monthly deduction is taken before income tax and FICA are calculated
- 2.This reduces the employee's taxable income, lowering their income tax and FICA withholding
- 3.The tax savings offset the deduction amount, resulting in virtually identical net pay
- 4.The employee now has comprehensive preventive care benefits with no out-of-pocket expenses
See the Paycheck Impact
Compare a monthly paycheck with and without the Preventive Care Benefits Program. Same take-home pay — plus comprehensive benefits.
Without PCBP
Standard Paycheck
Gross Pay
$3293.33
| Gross Pay | $3293.33 |
| Pre-Tax Deductions | $0.00 |
| Taxable Income | $3293.33 |
| Federal Withholdings | -$395.20 |
| State Withholdings | -$189.36 |
| Social Security (6.2%) | -$204.18 |
| Medicare (1.45%) | -$47.75 |
| Total Taxes | -$836.49 |
| Post-Tax Reimbursement | $0.00 |
| Net Take-Home Pay | $2456.84 |
Benefits Included
None
With PCBP
Enhanced Paycheck
Gross Pay
$3293.33
| Gross Pay | $3293.33 |
| Pre-Tax SIMRP DeductionTax Advantaged | -$1220.00 |
| Taxable Income | $2073.33 |
| Federal Withholdings | -$248.80 |
| State Withholdings | -$120.36 |
| Social Security (6.2%) | -$128.54 |
| Medicare (1.45%) | -$30.06 |
| Total Taxes | -$527.76 |
| WIMPER ReimbursementReturned to You | +$1220.00 |
| Net Take-Home Pay | $2456.84 |
Benefits Included
1,000+ Rx, Telemedicine, $150K Life Insurance, Mental Health, and more
Net Pay Difference
$0.00
Identical take-home pay
Tax Savings per Paycheck
$308.73
Lower taxes for employee
Employer FICA Savings
$93.33/mo
Per participating employee
Net pay is identical in both scenarios. The $1,220 pre-tax SIMRP deduction reduces taxable income, lowering taxes by $308.73. The WIMPER post-tax reimbursement returns the full $1,220 — resulting in the same take-home pay plus comprehensive preventive care benefits.
See Your Exact Savings
Use our calculator or schedule a discovery call to see precisely how much your business will save.