A Smarter Employee Benefit Strategy for Employers
Solutions By Salm helps employers evaluate an Employee Health Program (EHP) designed to complement existing health benefits—not replace them—while creating additional value for employees and the potential for meaningful employer payroll-tax savings.
For qualifying employers, the strategy may generate approximately $600–$700 in annual FICA savings per participating employee, while providing employees with additional health and wellness resources.
Better Benefits Can Also Create Better Business Economics
EHP introduces preventative wellness
By adding a preventive wellness benefit layer alongside an employer’s existing health plan, qualifying businesses may be able to improve employee benefits while reducing employer FICA expense. The program is designed to integrate without replacing or disrupting the company’s current health benefits.
The Potential Employer Impact
What is the Employee Health Program?
EHP is an employer-sponsored wellness strategy designed to add a preventive wellness benefit layer to existing employee benefits.
The strategy uses a Section 125 structure. Participating employees receive additional health and wellness benefits, while the payroll structure may reduce the employer’s matching FICA expense.
The program is not intended to replace an employer’s existing health insurance. It layers additional benefits onto the benefits already in place.
The Financial Opportunity for Employers
Small changes across a workforce can create significant annual numbers.
Based on an illustrative $600–$700 in potential annual employer FICA savings per participating employee, the opportunity could look like:
The Bolt Employee Savings Analysis you provided uses this same model, illustrating $60,000–$70,000 for 100 participating employees, $120,000–$140,000 for 200, and $180,000–$210,000 for 300.
These figures are illustrative, not guaranteed. Actual savings depend on employee eligibility and participation, payroll configuration, plan design, applicable tax treatment and final program configuration.
Want to know what the numbers can look like for your Company?
What's In It For Your Employees?
This isn’t simply a payroll-tax strategy.
The additional employee benefits are a major part of the program.
Depending upon final plan design, participating employees may receive access to:
Convenient access to healthcare resources when employees need them.
Additional support for employee well-being.
The program has over 1,000+ prescriptions available at no cost.
Additional health, nutrition and weight-management support.
The EHP materials describe included services as being available without employee copays or deductibles.
The program structure may also result in increased take-home pay for participating employees.
Why Employers Are Taking A Closer Look
Reduce Payroll-Tax Expense
For qualifying employers, the program may reduce employer FICA expense on eligible participating employees.
Enhance Existing Benefits
EHP is designed to complement existing health benefits, rather than require the employer to replace its current plan.
Support Employee Retention
Employees receive additional benefits that can increase the overall value of their compensation and benefits package.
Improve Access to Care
Easier access to primary care, urgent care, mental-health services and other wellness resources may encourage greater employee participation in their healthcare.
Create Financial Value Without Cutting Benefits
Instead of reducing employee benefits to control expenses, EHP is designed to explore whether an employer can add employee value while potentially reducing payroll-tax expense.
Is Your Company A Good Fit?
EHP deserves a closer look if your organization:
✓ Has 10 or more W-2 employees
✓ Currently offers employee health benefits
✓ Wants to reduce payroll-tax expense without cutting benefits
✓ Is concerned about employee retention and recruiting
✓ Wants to improve the value of its employee benefits package
✓ Is interested in determining whether its existing payroll and benefit structure creates an opportunity for savings
The First Step Is the Math
You don’t need to make a benefits decision to find out whether EHP deserves further consideration.
Start with the numbers.
Solutions By Salm can perform an initial review based on your eligible U.S. W-2 employee population, expected participation and relevant payroll information.
The goal is to determine:
Does your company appear to qualify?
What could the estimated annual employer savings be?
What could the impact be for participating employees?
How would the program work alongside your existing benefits?
Does the financial opportunity justify taking the next step?
Talk With Jeff Salm
Find Out If EHP Makes Financial Sense for Your Company
Jeff Salm and Solutions By Salm can help you evaluate the opportunity before you commit to anything.
A brief initial review can help determine whether your organization qualifies and whether the potential employer and employee benefits warrant a more detailed analysis.
If the economics don’t make sense, you’ll know.
If they do, you’ll have real numbers to evaluate before moving forward.
Our Services
Contact Us
- Palm Coast, Florida
- 386-388-2411
- SolutionsBySalm@Gmail.com
