Payroll Tax & Employee Health Savings
Reduce employer payroll taxes while giving employees telemedicine, mental health care, pharmacy benefits and life insurance, at no added cost to your budget.
A layer on top of the health plan you already have, not a replacement
Your employees keep the healthcare plan they have today: Anthem, Blue Cross, whichever carrier you use. We don't change it. The Payroll Tax & Employee Health Savings program layers on top of that plan: employees get extended benefits on top of what they already have, and the company earns a payroll-tax advantage.
At Business Solutions Group, we help businesses implement wellness and healthcare programs that lower overall costs while improving employee health and satisfaction. By providing structured preventive benefits, companies can prevent costly medical claims before they happen, keeping more money in the business while offering employees valuable support. The program works on two fronts at once: certain payroll taxes, and the medical claims your plan has to absorb.
- No changes to your current healthcare plan or carrier
- Integrates with your existing payroll and benefits structure
- Designed to follow IRS regulations; we handle setup and compliance
- Adds employee benefits without adding employee cost
- Built for companies with 25 or more employees
Turn Benefits, Into Tax Savings
A healthier workforce isn’t just good for people. It’s good for business. The Business Solutions Group Preventative Health Program helps employers reduce costs, support their teams, and improve the bottom line.
$650
Average annual FICA tax savings per employee
6:1 ROI
On average wellness investments
$3.29 returned
In reduced healthcare costs for every $1
Fully IRS-compliant
And backed by annual audits
No out-of-pocket costs
For employees or employers
| For employers | For employees |
|---|---|
| Boost productivity: healthier, more engaged teams | Financial wellness: guidance for budgeting, saving and retirement |
| Attract and retain talent: stand out with benefits people value | Work-life balance: 24/7 virtual care and mental health support for the whole household |
| Cut costs and taxes: reduce payroll taxes and rising healthcare costs | Life insurance: coverage up to $150,000, no exams required |
| Improve organizational health: lower absenteeism, burnout and turnover | Telemedicine: copay-free telemedicine and tax-free reimbursements |
| Financial ROI: deliver measurable financial returns | Preventative health screenings: screenings and risk assessments |
Investing in employee wellness isn’t a perk. It’s a performance driver.
When employees feel supported, stress drops, productivity rises and healthcare costs decline. Wellness is about building a culture of care that drives measurable results.
Sources: ADAA (2021), Workhuman (2024), Gallup (2024), Zippia (2023).
It layers onto the payroll and benefits structure you already have
The program integrates with your existing payroll and benefits setup rather than replacing it. Five components do the work.
Employer-sponsored claim-reduction initiatives
Structured initiatives that encourage employees to use preventive care rather than waiting until a condition becomes expensive to treat.
Tax-advantaged medical rewards
A rewards program built inside an IRS-compliant healthcare structure, so participation carries a tax advantage as well as a health benefit.
Telemedicine access
Virtual care employees can reach with reduced or no copays.
Guaranteed-issue life insurance
Life insurance coverage employees receive without the usual underwriting hurdles, added to the benefits package at no cost to them.
Lifestyle and wellness resources
Health assessments, wellness coaching and lifestyle resources that support employees day to day, not only when something goes wrong.
Setup and compliance, managed
We manage the setup and compliance, ensuring the program follows IRS regulations while delivering both health and financial benefits.
The result: healthier employees, fewer claims, and measurable savings for your company.
Virtual care, mental health and pharmacy benefits with no copays
Employees reach every benefit from the Personal Health Dashboard (PHD) app on their phone, or online through a secure portal that also holds their universal life insurance.
Virtual primary care
Over 30 million Americans lack regular access to primary care.
- No copay for services: zero out-of-pocket costs for doctor visits
- Family coverage: one plan covers the entire household
- Easy access to virtual doctors: real-time consultations, diagnoses and treatment, anywhere, anytime
- Wellness programs for prevention: proactive care to reduce illness and long-term costs
Virtual urgent care
80% faster expert medical care, saving time and money when it matters most.
- Help within minutes, 24/7/365
- A nationwide network of top providers
- Prescriptions and referrals in about 20 minutes
- No copays or claims, with immediate access
- Early intervention that reduces long-term health risks
- Fewer costly, time-consuming ER visits
Mental health care
1 in 4 US adults experienced a mental health condition in the past year.
- 24/7 support when every second counts
- Always connected to master’s-level clinicians
- Regular check-ins to track progress
- Confidential, judgment-free care
- Virtual or in-person sessions where available
Added benefits
- No claims or copays
- Nationwide coverage
- Coordinated clinical care
- Provider matching
- Family coverage
Pharmacy benefits
Nearly 1 in 4 Americans miss prescriptions because of cost.
- No-cost access to 1,000+ maintenance medications, plus 70+ discounted urgent medications
- A pharmacy savings program through international partners
- Pharmacist consultations for medication questions
- A pharmacy discount card for medications outside the formulary
Added benefits
- Fast, easy refills
- Free home delivery
- No claims or copays
- Nationwide coverage
Employer wellness programs are federally recognized and supported
The Affordable Care Act supports employer wellness programs, backed by the U.S. Department of Health & Human Services, the U.S. Treasury and the Department of Labor. See CMS.gov for details.
Federally recognized
Approved participatory wellness plans under the Affordable Care Act
Built for healthier workplaces
Designed to promote healthier, more productive teams
Open to every employee
Available to all employees, regardless of health status
Backed by U.S. agencies
HHS, the U.S. Treasury and the Department of Labor
Affordable, portable coverage with tax-advantaged benefits for all
Benefits to employees
- Guaranteed issue: no bloodwork or medical exams required
- Living benefits: access funds in case of serious illness or injury
- Beneficiary protection: financial security for loved ones
- Tax-deferred cash value: premiums grow in a tax-advantaged account
- Permanent and portable: coverage continues even after leaving the company
Benefits to employers
- A financial safety net for employees
- Average annual premium per employee: $1,500
- Average death benefit per employee: $100,000
- Funded through employee participation, using the tax savings
The same take-home pay, with the benefits funded by tax savings
An adjustment to gross wages lowers taxable income. The tax savings fund the Preventative Health Plan and universal life insurance with money that would normally go to the IRS.
| Without program | With program | |
|---|---|---|
| Gross wages | $5,500.00 | $5,500.00 |
| Section 125 deduction | $0.00 | -$1,250.00 |
| 401(k) | -$400.00 | -$400.00 |
| Medical | -$250.00 | -$250.00 |
| Dental | -$50.00 | -$50.00 |
| Taxable gross wages | $4,800.00 | $3,550.00 |
| Federal tax | -$367.20 | -$271.57 |
| State tax | -$491.04 | -$234.30 |
| Social Security | -$297.60 | -$220.10 |
| Total tax withholdings | -$1,155.84 | -$725.97 |
| Benefit credit | $0.00 | +$1,250.00 |
| Administration fee | $0.00 | -$150.00 |
| Universal life premium | $0.00 | -$279.87 |
| Total net wages | $3,644.16 | $3,644.16 |
| Same net pay. $429.87 a month in tax savings covers the $150 administration fee and the $279.87 universal life premium. | ||
Illustrative example for one employee with dependents. The $1,250 Section 125 deduction (IRC 125 cafeteria plan) is the monthly cost of all program benefits ($950 for single employees) and is returned as a benefit credit for participation. Tax withholdings are estimates; actual figures depend on each employee’s W-4, state and payroll.
Five ways the program shows up on your P&L
Two of these are direct cost reductions. The other three compound over time as the workforce gets healthier and turnover falls.
1. Reduce payroll taxes
The program provides IRS-compliant healthcare structures that reduce certain payroll taxes. Many businesses experience significant annual savings per employee, which offsets the cost of the program.
2. Lower employee healthcare claims
The Payroll Tax & Employee Health Savings program and its structured benefits lead to fewer employee medical claims. When employees use telemedicine, wellness coaching and preventive care programs, claims for expensive procedures drop, reducing overall healthcare spending. This is one of the biggest ways the program saves your company money, in addition to the tax savings.
3. Enhanced employee benefits without extra cost
You provide meaningful benefits: telemedicine and virtual care access, wellness coaching and health assessments, and life insurance coverage. Employees benefit from better health and reduced out-of-pocket expenses, while your company controls costs.
4. Healthier, more productive workforce
The Payroll Tax & Employee Health Savings program improves employee attendance, productivity and engagement. Healthier employees mean fewer sick days and lower overall claims, contributing to long-term cost reduction.
5. Recruitment and retention advantages
Offering the Payroll Tax & Employee Health Savings program helps attract and retain talent. Employees see value in a workplace that invests in their health, which improves retention and reduces hiring costs.
Where each benefit lands in the business
Four benefits, four distinct lines of impact, two on cost, two on the people side that feed back into cost.
| Benefit | Impact on your business |
|---|---|
| Payroll tax savings | Lower FICA and payroll tax obligations |
| Reduced employee claims | Fewer costly medical claims through preventive care |
| Healthier workforce | Higher productivity and lower absenteeism |
| Employee retention | Lower turnover and hiring/training costs |
Designed for companies with 25 or more employees
These are the sectors the program is built for.
Professional services
Healthcare providers
Construction companies
Hospitality and restaurants
Retail businesses
Small and mid-sized companies
Who qualifies for the program
Eligibility is checked at three levels: your health plan, each role, and each employee’s payroll.
Health insurance
Employees must be offered health insurance by their employer.
Employment type
Full-time employees working at least 30 hours a week qualify. Part-time and seasonal employees do not.
Individual eligibility
Set by each employee’s tax withholdings. We review gross wages, all payroll deductions and W-4 status; if withholdings aren’t enough to cover the benefits, that employee doesn’t qualify.
Why businesses choose Business Solutions Group
We make it simple to implement a Payroll Tax & Employee Health Savings program that saves money while improving employee health. You are not left to interpret the rules or sell the program to your own staff; we handle it.
- Program evaluation and savings analysis
- Compliance and implementation guidance
- Employee onboarding and education
- Ongoing support to ensure maximum cost savings
Frequently asked questions
No. Your employees keep the plan and carrier they already have, the program makes no changes to your current healthcare plan. It adds claim-reduction components alongside it, preventive care initiatives, tax-advantaged medical rewards, telemedicine access, guaranteed-issue life insurance and wellness resources, rather than replacing what you offer today.
No. The program is designed to add benefits without extra cost. Employees get telemedicine and virtual care access with reduced or no copays, wellness coaching and health assessments, and life insurance coverage, so their out-of-pocket expenses go down, not up.
The program uses IRS-compliant healthcare structures that reduce certain payroll taxes, lowering FICA and payroll tax obligations. Many businesses experience significant annual savings per employee, which offsets the cost of the program. What that comes to in your case depends on your headcount, payroll and participation, which is what the free analysis estimates.
Business Solutions Group (BSG) and their approved licensed provider of choice handle compliance and implementation. BSG’s licensed provider manages the setup and compliance, so the program follows IRS regulations, and stay involved afterward. The licensed provider provides program evaluation and savings analysis up front, compliance and implementation guidance during rollout, employee onboarding and education, then ongoing support to make sure the savings hold.
The program is designed for companies with 25 or more employees. The free savings analysis will tell you what the numbers look like for your specific headcount and payroll.
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RelatedFind out what the Payroll Tax & Employee Health Savings program could save your business
A free analysis of your payroll tax savings, your projected claims reduction, and what implementation would look like with no obligation to engage.
Get your free savings analysis
Start with a free analysis; we'll quantify the reduced payroll taxes and lower employee claims for your headcount, at no cost and no obligation. We'll walk you through the details on a short call.
- Estimated payroll tax savings
- Projected reduction in employee claims
- Implementation plan tailored to your business