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Key Benefits of the FICA Wellness Program

Tax Savings: Decreases payroll tax liability.

Employee Wellness: Promotes a healthier workforce.

Productivity Boost: Increases overall employee productivity.

Talent Attraction: Improves employee recruitment efforts.

Reduced Absenteeism: Lowers rates of sick leave usage.


This incredible program provides benefits to enhance your employees wellbeing... and it's no cost to you.

Answers to your initial questions...

Below you'll find answers to some of the most common initial questions the FICA Wellness Program. Whether you're new to the process or looking for specific information, we've got you covered. If you are looking for answers that are far more in depth, please visit the Q&A section at the bottom of the page or schedule an appointment.

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Learn about what matters to you...

Let's face it, this is a massive program benefiting every person in your organization. Each person is impacted differently and with so many benefits to explore - simply start by jumping to the section that is most relevant to your position. What department are you involved with?


Owners & Founders

Rundown for Owners

As a business owner, offering a comprehensive wellness program can significantly enhance employee satisfaction and retention. Financial wellness initiatives, such as student loan debt relief, bill reduction assistance, and exclusive discounts, alleviate financial stress. Personal wellness benefits, including identity theft recovery and extensive legal support, provide crucial security and peace of mind. Health wellness services, like 24/7 telemedicine, holistic coaching, and behavioral support, promote overall health and productivity. Additionally, wellness assistance offers unlimited consultations for childcare, eldercare, and personal advocacy, ensuring employees receive the support they need to balance work and personal life effectively. These robust benefits not only improve employee well-being but also foster a loyal and motivated workforce.

Check Eligibility Now

Human Resources

Rundown for HR

As a human resources manager, implementing a comprehensive wellness program can greatly enhance employee engagement and retention. Financial wellness initiatives, such as student loan debt relief, bill reduction assistance, and exclusive discounts, help reduce employees' financial stress. Personal wellness benefits, including identity theft recovery and extensive legal support, offer essential security and peace of mind. Health wellness services, such as 24/7 telemedicine, holistic coaching, and behavioral support, promote overall health and productivity. Additionally, wellness assistance provides unlimited consultations for childcare, eldercare, and personal advocacy, ensuring employees receive the support they need to balance work and personal life effectively. These robust benefits not only improve employee well-being but also contribute to a positive and supportive workplace culture.

Employee Benefits

Accounting & Financials

Benefits to the Bottom Line

For the financial decision-maker, implementing a comprehensive wellness program can offer substantial returns on investment through enhanced employee productivity and reduced healthcare costs. Financial wellness benefits such as budgeting tools, financial planning workshops, and savings incentives can improve employees' financial stability, reducing stress-related distractions. Personal wellness resources, including mental health support and stress management programs, contribute to a healthier and more focused workforce. Health wellness initiatives like fitness challenges, nutrition guidance, and regular health screenings encourage preventive care, potentially lowering medical expenses. Additionally, wellness assistance services such as flexible work arrangements and caregiving support can increase employee retention and reduce turnover costs. These benefits collectively promote a healthier, more productive, and loyal workforce, ultimately benefiting the company's bottom line.

Explore the Savings

So what is the FICA Wellness Program?

The FICA Reduction Program is a government-backed initiative designed to encourage businesses to invest in their employees' health and well-being. By offering a tax reduction for workplace wellness programs, the program enables employers to enhance productivity, attract quality talent, and ultimately reduce costs through tax savings. In case of a discrepancy, audit defense is provided.

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For Employees

For Employers

The FICA Wellness Program offers significant advantages for employees, focusing on enhancing their overall well-being and financial health. One of the primary benefits is the potential for tax savings on wellness-related expenses, as certain health and wellness activities might be eligible for pre-tax deductions under the program. This can reduce employees' overall taxable income while encouraging them to invest in their health. Additionally, the program promotes regular health assessments and preventive care, which help in early detection of health issues, thereby potentially reducing future healthcare costs. Employees also benefit from personalized wellness plans tailored to their specific needs, including access to fitness programs, nutritional guidance, and mental health support, all aimed at improving their quality of life. This comprehensive approach not only supports employees in maintaining their health but also enhances their productivity and engagement at work.

FICA Wellness Benefits for Business Owners

This incredible program provides benefits to enhance your employees wellbeing... and it's no cost to you.

Straight to the Point

As a business owner, you understand the importance of maximizing your return on investment. Implementing a comprehensive wellness program can yield significant financial benefits for your company. Consider the following statistics:

  • $3.27 ROI

    For every dollar spent on wellness programs, according to a Harvard study.

  • 28% reduction in sick days

    Leading to increased productivity and decreased absenteeism.

  • $6 savings per employee

    In healthcare costs for every dollar invested in wellness initiatives.

  • 25% decrease in health insurance claims

    Due to preventive care and healthier lifestyles.

  • Lower turnover rates

    Wellness programs can reduce employee turnover by up to 25%, saving on recruitment and training costs.

  • Boost in productivity

    Healthier employees are up to 10% more productive, directly impacting your bottom line.

Partner with Sanguine Strategic Advisors

In an era where employee health directly correlates with organizational productivity, implementing a wellness program is not just beneficial; it's essential. Our solutions leverage the FICA Wellness Program to provide a holistic approach to employee well-being, ensuring a healthier, more engaged workforce.

At Sanguine Strategic Advisors, we help businesses thrive by connecting them with pre-vetted, affordable service providers. Our expert network offers tailored solutions to improve operational efficiency and growth. We specialize in integrating comprehensive Wellness Programs, authorized under the Affordable Care Act, to enhance your employees' health and productivity. Discover how you can not only subsidize the cost of these programs through government tax credits but also generate surplus savings to reinvest in your business's growth. The easiest way to get started is to speak with a Wellness Specialist by booking a quick call.

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Eligibility Overview to Qualify for the FICA Wellness Program

The basic requirements for qualifications include...

Comprehensive Wellness Initiatives: Employers need to provide a wide-ranging wellness program that includes health risk assessments, educational programs, and preventive screenings. These components help identify health risks early, educate employees about healthy practices, and prevent the onset of diseases, which can reduce healthcare costs and improve workforce productivity.

Major Medical Coverage: It's essential for employers to offer a major medical coverage plan to all full-time employees. This plan should cover a broad spectrum of healthcare needs, from routine check-ups to major surgeries, ensuring that employees have adequate health coverage which is a core aspect of the wellness program.

Accessibility to All Employees: The wellness program must be accessible to every employee within the organization, regardless of their role, status, or employment terms. This inclusivity ensures that all employees can benefit from the wellness resources provided, promoting a universally healthy workplace environment.

Adherence to IRS Guidelines: Employers must ensure that their wellness programs comply with specific IRS guidelines for wellness programs. This compliance is crucial for the program to qualify for the associated tax advantages under FICA, ensuring that the programs are legally sound and beneficial from a fiscal perspective.

Effective Implementation and Documentation: Lastly, employers need to effectively implement their wellness programs and maintain thorough documentation of the program’s setup, activities, and outcomes. This includes tracking participation rates, health improvements, and other relevant metrics. Proper documentation supports the program’s efficacy and compliance, which is necessary for audit purposes and for maintaining qualification under the FICA Wellness Program.

Book a Consultation

To get the ball rolling with your companies Wellness Program, schedule a quick consultation with a Wellness Advisor.

No Cost for Enrollment

Wellness Benefits for Human Resources

Give Your Employees the Benefits they Deserve

To qualify for the FICA Wellness Program, employers must meet several specific qualifiers that ensure their wellness initiatives are comprehensive, inclusive, and compliant with IRS regulations. Here are the key qualifiers:


Personal Wellness

  • Bankruptcy
  • Foreclosure
  • Home Sale/Purchase
  • Divorce
  • Adoption
  • Child Custody/Support
  • Simple Will
  • Legal Matters
  • Document Review
  • Dispute Resolution

Financial Wellness

  • Student Loan Debt Relief
  • Help Lowering Bills
  • Get Paid to Exercise
  • Travel, Entertainment & Dining Discounts
  • Consultation Benefits

Health Wellness

  • Health Risk Assessment
  • 24/7 Telemedicine
  • Prescription Ordering
  • Holistic Coaching
  • Relationship Health
  • Behavioral Coaching
  • Telephonic Health Coaching
  • Smoking Cessation
  • Employee Assistance Program (EAP)

Wellness Assistance

  • Childcare
  • Adoption
  • Eldercare
  • Dependent Care
  • Medical Advocacy
  • Life Coaching
  • Personal Assistant

Bring Out the Best in Your Team

Employees benefit the most by working for a company with our Wellness Plans in place. By providing these benefits, companies with FICA wellness programs not only enhance the well-being of their employees but also create a more attractive and supportive workplace. In a competitive job market, the FICA Wellness Program is a top of the line incentive to offer. Imagine offering the following as incentives to work for your company...

  • Cost Savings for Employers

    The FICA Wellness Program can lead to an average annual payroll tax savings of approximately $400 per employee for the employer. This is achieved through tax credits and deductions associated with the program.

  • Increased Employee Retention

    Implementing wellness programs like the FICA Wellness Program can significantly improve employee retention. Healthier employees are more satisfied with their job, which leads to lower turnover rates.

  • Enhanced Employee Benefits at Zero Net Cost

    The comprehensive benefits package, including health risk assessments, telemedicine, financial wellness, and legal assistance, is offered at zero net out-of-pocket cost for employees. This is made possible through tax savings from the program.

  • 25% decrease in health insurance claims

    The program offers extensive wellness services such as 24/7 telemedicine with no copay, holistic coaching, and access to a Personal Health Dashboard (PHD). These services contribute to the overall health and well-being of employees and their families.

Cost Cutting

Tax Savings

Employees benefit from reduced Federal Insurance Contributions Act (FICA) taxes, leading to increased take-home pay. Contributions to wellness programs are made pre-tax, lowering taxable income.

Human Resources

Enhanced Health and Well-being

Access to comprehensive wellness programs promotes better health and well-being. Employees can take advantage of fitness programs, mental health support, and preventative care measures, leading to a healthier lifestyle.

Tax Reduction

Financial Reimbursements for Medical Expenses

Employees receive tax-free reimbursements for qualified medical expenses. This alleviates the financial burden of out-of-pocket healthcare costs, making medical care more affordable.

Professional Services

Increased Access to Health Resources

The wellness program often includes resources such as health assessments, personalized coaching, and access to wellness portals. These resources help employees manage their health more effectively.

Human Resources

Improved Work-Life Balance

Wellness programs often include initiatives aimed at improving work-life balance, such as flexible working hours, stress management workshops, and family-friendly policies. This leads to a more satisfied and engaged workforce.

Human Resources

Work-Life Balance Initiatives

  • Flexible Work Arrangements: Guidance on creating a more flexible, balanced work environment
  • Stress Management Resources: Workshops, webinars, and articles on managing stress effectively
  • Employee Assistance Program (EAP): Confidential counseling and support for personal and work-related issues
Business Development

Higher Job Satisfaction and Morale

When employees feel that their health and well-being are prioritized, job satisfaction and morale increase. This results in a more positive work environment and stronger employee loyalty.

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Comprehensive Insurance Coverage

Employees have access to a range of insurance options, including additional coverage for wellness activities. This comprehensive coverage ensures that employees and their families are well-protected against health risks.

A Breakdown for CFO's and Accounting Pros

We're skipping the fluff and diving right into the facts. This program saves company money (a lot), increases employee production and output and won't cost you a dime.

Audit Risk Reduction through Participation

Audit Risk Reduction through Participation

Compliance with IRS regulations is a cornerstone of the FICA Wellness Program. It adheres to relevant sections of the Internal Revenue Code, including IRC sections 105, 106, and 125, which govern medical expense reimbursements and cafeteria plans. The program's structure includes rigorous non-discrimination testing and annual audits to ensure adherence to all legal standards, mitigating risks of audits and penalties.

Actual Cost Savings for the Company

Actual Cost Savings for the Company

The FICA Wellness Program delivers significant cost savings for companies. By utilizing tax advantages under IRS regulations, the program reduces payroll tax liabilities and can lower workers' compensation premiums. Specifically, companies can see an annual FICA savings of approximately $400 per employee, covering all program costs. Additionally, comprehensive wellness programs offer a return on investment (ROI) of $3.27 for every dollar spent, attributed to reduced healthcare costs and increased productivity.

Seemless Integration & Minimal Disruption to Operations

Seemless Integration & Minimal Disruption to Operations

The FICA Wellness Program is designed to seamlessly integrate with your existing payroll processes, with minimal disruption. Adjustments to gross wages and pre-tax deductions are managed through your payroll system, ensuring that employees' net pay remains unchanged. The program utilizes a Personal Health Dashboard (PHD) for employees to manage their benefits and submit claims, streamlining administration and reducing the burden on your HR and payroll teams. Detailed payroll examples and training materials are provided to ensure smooth implementation and ongoing management.

WebMD Health Services Case Study

In a comprehensive study involving two distinct employee populations were evaluated: a group of 82,681 people who had lifestyle strategies to maintain overall health and well-being and minimize the risk of developing a preventable condition, and a group 28,941 employees managing severe chronic conditions. The conditions included heart failure, coronary artery disease, chronic obstructive pulmonary disease, diabetes, and asthma.

The FICA Wellness Program demonstrated significant cost savings through targeted condition management and lifestyle interventions. This case study examines the detailed breakdown of these savings, emphasizing that not only does the program work, it saves your company a ton of money along the way.

Chronic Condition Management

Employees with chronic conditions were monitored using medical and pharmacy claims data. The study employed an acuity score algorithm, which included indices for future predicted costs, potential hospitalizations, emergency department visits, current care gaps, and the risk of developing related conditions. The findings revealed a stark difference in healthcare costs based on acuity levels:

  • High-Acuity Group: $25,046 per person
  • Low-Acuity Group: $6,302 per person

By implementing condition management coaching, significant improvements were observed:

  • 39% of high-acuity employees moved to moderate acuity levels.
  • 12% of moderate-acuity employees moved to low acuity levels.

This resulted in an annual cost saving of $1.1 million, averaging $1,113 per participant.

Lifestyle Intervention

For the lifestyle group, the program targeted 12 modifiable health risks (e.g., poor diet, smoking, obesity) and 11 preventive screenings (e.g., mammography, colonoscopy).

The cost analysis for lifestyle-focused employees highlighted:

  • High-Acuity Group: $5,598 per person
  • Low-Acuity Group: $4,018 per person

Coaching interventions further facilitated positive health outcomes:

  • 23% of high-acuity employees improved to moderate levels.
  • 43% of moderate-acuity employees improved to low levels.

For a subset of 1,000 employees receiving lifestyle coaching, the change in medical costs after 12 months was estimated at $195 per participant, based on reduced acuity ratings.


Financial Breakdown of the Results

Condition Management Savings:

    • Total Participants: 28,941
    • High to Moderate Acuity Improvement: 39%
    • Moderate to Low Acuity Improvement: 12%
    • Cost Saving per High-Acuity Participant: $1,113
    • Total Annual Savings: $1.1 million

Lifestyle Intervention Savings:

    • Subset Participants: 1,000
    • High to Moderate Acuity Improvement: 23%
    • Moderate to Low Acuity Improvement: 43%
    • Cost Saving per Participant: $195
    • Total Annual Savings for Subset: $195,000

To Sum it Up, This Program Works

The FICA Wellness Program not only improves employee health outcomes but also offers substantial cost savings for employers. By addressing chronic conditions through targeted management and lifestyle interventions, the program significantly reduces healthcare expenditures.

With an annual cost saving of $1.1 million from condition management alone, and additional savings from lifestyle improvements, the program demonstrates a compelling ROI, making it an attractive proposition for any business aiming to optimize healthcare spending and enhance employee productivity. 

Not to mention, it's an incredibly attractive incentive for highly qualified candidates...

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Can't Find an Answer? Search our Knowledge Base

How much can my business save?
Businesses save on average $600 in taxes per employee per year of eligible wellness program participants. 

Is the credit available for small businesses?
Yes, all business with more than 10 participants  benefit from the FICA reduction through Wellness, provided they meet eligibility requirements.
Can businesses claim multiple wellness initiatives and programs?
Yes, businesses can combine multiple wellness programs  to support the workforce.   An employer cannot “double dip” any tax savings achieved from the program.  
Are wellness incentives included?
Yes, incentives such as discounted gymmemberships, smoking cessation, and weight-loss programs are included if they meet the IRS guidelines. These specific types of benefits are focused on the diagnosis, cure, mitigation, treatment, or prevention of disease, which affects the body or mind.

Definition Reimburses non-covered medical expenses Integrates health plan, wellness plan, and SIMRP
Eligibility Benefits 70% of all or 80% of eligible employees Full-time employees (35+ hours/week)
Plan Structure Requires a plan document Involves salary reduction agreement and IRC Section 106 plan
Tax Code Utilization IRC 105(b), 213(d) IRC 105(b), 213(d), 106(a)
Compliance Risk of double dipping with fixed indemnity plans ACA-compliant, non-discriminatory, health-contingent programs
Employee Benefits Set amounts per service, risk of taxable benefits Tax-free reimbursements, preventative care, FICA tax reduction
Employer Benefits Must avoid double dipping Reduced FICA taxes, healthier workforce

Comparison chart has been summarized citing this source

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Ready to enhance your employee wellness and benefit from FICA tax credits? Contact us today to learn how our tailored Wellness Programs can revolutionize your workplace and contribute to your bottom line.