Preventative Care Management Program: Client Success Case Study
Executive Summary
This case study examines how a mid-sized business successfully implemented the Preventative Care Management (PCM) Program. By strategically restructuring their employee benefits approach, the company achieved significant tax savings while enhancing employee wellness benefits and remaining fully compliant with all federal regulations.
Client Profile
Industry
Service/Retail
Employees
210+ (165 eligible)
Plan Structure
Standard & Family
Implementation
2024
Challenge
Like many businesses with a substantial workforce, the client faced significant payroll tax burdens, particularly from FICA (Federal Insurance Contributions Act) taxes which fund Social Security and Medicare. These mandatory employer contributions considerably impacted their bottom line, reducing capital available for growth initiatives and employee benefits.
Solution: Preventative Care Management Program
After consultation, the company implemented the Preventative Care Management Program, which offers legitimate tax advantages through proper classification of certain health benefit elements while enhancing employee wellness offerings.
Implementation Process
The PCM program was implemented through a systematic approach:
- Eligibility Assessment: Analysis of each employee's eligibility based on income thresholds and other qualifying factors
- Benefit Structure Design: Creation of tailored Standard (S) and Family (F) plan options
- Program Integration: Seamless incorporation into the existing payroll and benefits system
- Documentation: Establishment of proper compliance documentation and reporting
- Employee Communication: Clear explanation of enhanced benefits to eligible employees
Results and Benefits
Quantifiable Savings
Based on the program analysis report:
Monthly Benefits Increase
$19,012.65
Annual Benefits Increase
$228,151.75
Estimated Annual Tax Savings
$41,906.70
Employee Benefits Structure
Standard Plan (S)
Most eligible employees received monthly benefit increases ranging from $45-$180
Family Plan (F)
Eligible employees with family coverage received enhanced benefits of approximately $96-$186 monthly
Per-Payroll Impact
Benefits increases ranged from approximately $10-$50 per payroll period depending on plan type
Pattern of Success
The results:
- Approximately 62% of evaluated employees qualified for the program
- Each qualifying employee generated consistent employer tax savings of $254.40 annually for standard plan participants and $552.75 annually for family plan participants
- The program maintained compliance while delivering valuable preventative care benefits
Implementation Considerations
The analysis report highlights key eligibility factors that companies considering this program should be aware of:
- Income Thresholds: Employees with annual salaries below $25,000 were generally ineligible
- Taxable Wage Requirements: Employees whose withholdings and deductions already reduced taxable wages below certain thresholds were ineligible
- Plan Design Options: Benefits were allocated based on both standard and family coverage options
Conclusion
The Preventative Care Management Program implemented has proven to be a valuable financial and employee wellness strategy. By taking advantage of legitimate tax planning opportunities that simultaneously enhance employee benefits, the company optimized its tax position while supporting employee health initiatives.
For businesses seeking similar advantages, the PCM program offers a structured approach to achieve tax savings while enhancing employee benefits packages. The program demonstrates how preventative care initiatives can serve the dual purpose of supporting both employee wellness and company financial health.
Note: This case study focuses on general tax optimization strategies and preventative care benefit enhancements. Each business situation is unique, and results may vary. Always consult with qualified tax and benefits professionals before implementing any tax strategy.
TaxAdvantage.ai and its partners provide proper guidance for implementation that ensures compliance with all relevant tax and healthcare regulations.