Industry Savings Guides Save $138/Yr Per Employee.
Plain-English Payroll Tax Arithmetic · Built for Business Owners & CFOs
You do not need to be a CPA or tax attorney to understand how this works. When your full-time insured employees elect EHP’s $0-copay preventive and virtual care program at $150/month pre-tax, your business stops paying the 7.65% employer FICA tax on that amount ($138/yr gross employer FICA reduction per participant before any applicable EHP program fee). Choose your industry below to see your numbers.
We model only the employees who qualify, separate your gross employer FICA reduction ($138/yr each) from employee paycheck tax savings ($430/yr each), show EHP’s program cost on the same page before you commit, and put every IRS citation in writing for your CPA.
Simple Math · Zero Consulting Fee
Choose Your Industry.
Plain-English Savings Guides & Interactive Calculators Across Major Industries
Keep Your Current Insurance
You add EHP’s $0-copay virtual primary/urgent care, mental health, and Rx program alongside your existing health plan. No carrier or doctor changes.
Full-Time Staff Elect Pre-Tax
Participating full-time W-2 staff elect $150/mo pre-tax for EHP care: ~$35.84/mo ($430/yr) in tax savings lowers their net paycheck cost to ~$114.16/mo (no unsubstantiated cash-back leg).
Gross 7.65% Employer FICA Saved
Your company stops paying the 7.65% employer FICA tax on that $150/mo ($1,800/yr) election ($138/yr gross FICA reduction per employee before any applicable EHP program fee).
Healthcare & Clinical Operations
Regional Hospital Systems & Acute-Care Networks
Hospital networks and multi-campus health systems employ thousands of full-time nurses, allied health technicians, lab specialists, and support staff who are already on your group health plan. By adding EHP's $0-copay preventive and virtual care benefit alongside your current insurance, your hospital saves $138 per participating employee every year in employer payroll taxes with zero change to your carrier or network.
Skilled Nursing (SNF), Assisted Living & Post-Acute Portfolios
Skilled nursing and senior living operators employ large teams of full-time CNAs, LPNs, RNs, dietary, and housekeeping staff across multiple facility LLCs. Adding EHP's $0-copay virtual care and prescription benefit alongside your facility health plan saves you $138 per participating employee every year in employer payroll taxes.
Multi-Site MSOs, Physician Practice & Dental Support Organizations (DSOs)
Multi-location medical and dental groups centralize payroll and benefits for hundreds of full-time hygienists, medical assistants, front-desk coordinators, and billing specialists. Our program adds $0-copay preventive and virtual care alongside your group health plan while saving your practice $138 per participating employee each year.
Home Health, Hospice, ABA Therapy & Behavioral Health Networks
Home health, hospice, and behavioral therapy agencies rely on dedicated field clinicians, visiting nurses, RBTs, BCBAs, and care coordinators. Adding EHP's 24/7 virtual care and mental health benefit alongside your agency health plan gives field staff $0-copay care from anywhere while saving you $138 per participating employee every year.
Manufacturing, Infrastructure & Energy
Industrial, Automotive Tier-1 & Precision Manufacturing
Manufacturing plants and automotive suppliers have some of the highest percentages of full-time W-2 employees on company health insurance in America. Our program adds $0-copay preventive and virtual care alongside your existing plant health plan while saving your company $138 per participating employee every year in payroll taxes.
Food & Beverage Processing, Cold-Chain & Packaging Plants
Commercial food processors, beverage bottlers, dairy plants, and cold-chain packaging facilities run large, year-round full-time production and sanitation teams. Adding EHP's $0-copay virtual care and pharmacy benefit alongside your plant health plan saves you $138 per participating employee every year in employer payroll taxes.
Commercial Construction, MEP & Specialty Trade Contractors
Commercial general contractors and mechanical, electrical, plumbing (MEP), and HVAC firms employ hundreds of full-time W-2 estimators, project managers, foremen, and field tradesmen. Our program adds $0-copay 50-state virtual care alongside your company health plan while saving you $138 per participating employee each year.
Energy, Oilfield Services, Utilities & Environmental Infrastructure
Utility contractors, energy field services, pipeline operators, and environmental infrastructure groups maintain nearly 90% full-time W-2 workforces on company health insurance. Adding EHP's nationwide $0-copay preventive and virtual care program saves your company $138 to $184 per participating employee every year in payroll taxes.
Logistics, Fleet & Distribution
3PL Warehousing, Freight Carriers & Cold-Storage Distribution
Third-party logistics (3PL) warehouses, freight carriers, and distribution networks employ thousands of full-time W-2 company drivers, forklift operators, dispatchers, and dock supervisors. Adding EHP's $0-copay 50-state virtual care alongside your health plan saves you $138 per participating employee every year in payroll taxes.
Wholesale Distributors, Building Materials & Industrial Supply
Multi-branch wholesale distributors across HVAC, plumbing, electrical, building materials, foodservice, and industrial supply have long-tenured, full-time branch, warehouse, delivery, and inside-sales teams. Our program adds $0-copay preventive and virtual care alongside your health plan while saving you $138 per participating employee each year.
Multi-Dealership Automotive, Commercial Truck & Equipment Groups
Multi-rooftop auto, commercial truck, and heavy equipment dealership groups employ hundreds of full-time service technicians, parts counter specialists, advisors, BDC reps, and sales staff across separate dealership LLCs. Adding EHP's $0-copay virtual care alongside your dealership health plan saves you $138 per participating employee every year.
Aviation Ground Handling, MRO, Transit & Fleet Maintenance
Aircraft maintenance (MRO) facilities, airport ground-handling contractors, and commercial fleet maintenance operators run 24/7 full-time W-2 technical workforces across major hubs. Adding EHP's $0-copay preventive and virtual care benefit alongside your health plan saves you $138 per participating employee every year.
Hospitality, Multi-Unit Retail & Foodservice
Enterprise Restaurant Groups, QSR & Multi-Unit Franchise Operators
Multi-unit restaurant franchisees and hospitality groups employ hundreds of full-time general managers, assistant managers, kitchen managers, and full-time crew who are enrolled in your ACA health plan. Even after excluding part-time crew, your full-time insured team saves you $138 per participating employee every year in payroll taxes.
Hotel & Resort Management Companies, Casinos & Conference Centers
Hotel management companies, resort portfolios, and casinos employ large year-round teams of full-time housekeeping, engineering, culinary, front-desk, and property management staff. Adding EHP's $0-copay virtual care and pharmacy benefit alongside your hotel health plan saves $138 per participating employee every year.
Regional Grocery Chains, Supermarkets & Multi-Site Convenience Retailers
Regional supermarket chains, specialty grocers, and multi-site convenience retailers employ hundreds of full-time store managers, department leads, meat/deli/bakery specialists, warehousemen, and fleet drivers. In a 2% net-margin grocery business, saving $138 per participating full-time employee each year equals millions in register sales.
Business, Staffing & Facility Services
Commercial Staffing Agencies, IT/Clinical Staffing & Employer-of-Record (EOR)
Commercial, IT, engineering, and allied-health staffing firms carry thousands of full-time W-2 employees on their own payroll register. Because your agency pays the 7.65% employer payroll tax out of your bill-rate spread, saving $138 per participating full-time employee every year expands your net staffing margin immediately.
Integrated Facilities Management, Commercial Janitorial & Security Guard Services
Facilities management companies, commercial janitorial contractors, and security guard firms operate on competitive fixed-margin contracts where W-2 labor and payroll taxes are over 75% of total cost. Adding EHP's $0-copay virtual care alongside your health plan saves you $138 per participating full-time employee every year.
Enterprise Contact Centers, BPO, Revenue Cycle (RCM) & Back-Office Operations
Customer experience (CX) contact centers, healthcare revenue-cycle (RCM) bureaus, and claims processors employ large, 40-hour full-time W-2 teams across both campus hubs and remote states. Adding EHP's $0-copay 50-state virtual care alongside your health plan saves you $138 per participating employee every year.
Education, Municipal & Institutional
Private Universities, Charter School Networks & 501(c)(3) Human Services
Even though 501(c)(3) nonprofits, private universities, charter school networks, and human-services agencies are exempt from income tax, you still pay the full 7.65% employer payroll tax on every dollar of W-2 wages. Our program adds $0-copay care while returning $138 per participating employee each year to your mission budget.
Municipalities, County Governments, Public School Districts & Authorities
Cities, counties, public school districts, transit authorities, and water/utility authorities whose employees participate in Social Security have nearly 90% full-time health plan enrollment. Adding EHP's $0-copay preventive and virtual care benefit recovers $138 per participating employee every year for your general fund.
Industry Savings Comparison Chart.
Example Participating Full-Time Staff & Gross Annual Employer FICA Reduction
| Industry | Example Participating Staff | Monthly Benefit | Saved Per Employee | Your Annual Savings |
|---|---|---|---|---|
| Hospital Systems & Acute Care | 1,560 Full-Time Staff | $150/mo | $138/yr each | $215,280/yr |
| Skilled Nursing & Senior Living | 743 Full-Time Staff | $150/mo | $138/yr each | $102,534/yr |
| MSOs, Physician & DSO Groups | 517 Full-Time Staff | $150/mo | $138/yr each | $71,346/yr |
| Home Health & Behavioral Care | 549 Full-Time Staff | $150/mo | $138/yr each | $75,762/yr |
| Industrial & Auto Manufacturing | 846 Full-Time Staff | $150/mo | $138/yr each | $116,748/yr |
| Food & Beverage Processing | 1,050 Full-Time Staff | $150/mo | $138/yr each | $144,900/yr |
| Construction & Specialty Trades | 468 Full-Time Staff | $150/mo | $138/yr each | $64,584/yr |
| Energy, Utilities & Field Services | 794 Full-Time Staff | $200/mo | $184/yr each | $146,096/yr |
| 3PL, Freight & Warehousing | 1,094 Full-Time Staff | $150/mo | $138/yr each | $150,972/yr |
| Wholesale & Industrial Supply | 627 Full-Time Staff | $150/mo | $138/yr each | $86,526/yr |
| Auto & Truck Dealership Groups | 525 Full-Time Staff | $150/mo | $138/yr each | $72,450/yr |
| Aviation MRO & Fleet Services | 874 Full-Time Staff | $150/mo | $138/yr each | $120,612/yr |
| Multi-Unit Restaurant Groups | 721 Full-Time Staff | $150/mo | $138/yr each | $99,498/yr |
| Hotels, Resorts & Hospitality | 849 Full-Time Staff | $150/mo | $138/yr each | $117,162/yr |
| Grocery & C-Store Chains | 1,114 Full-Time Staff | $150/mo | $138/yr each | $153,732/yr |
| Commercial, IT & Clinical Staffing | 1,451 Full-Time Staff | $150/mo | $138/yr each | $200,238/yr |
| Facilities, Janitorial & Security | 1,056 Full-Time Staff | $150/mo | $138/yr each | $145,728/yr |
| Contact Centers, BPO & RCM | 1,181 Full-Time Staff | $150/mo | $138/yr each | $162,978/yr |
| Higher Ed, Charter Schools & Nonprofits | 776 Full-Time Staff | $150/mo | $138/yr each | $107,088/yr |
| Municipalities & Public Authorities | 1,056 Full-Time Staff | $150/mo | $138/yr each | $145,728/yr |
Fine print
No advice, no relationship
Boost Benefits provides employee benefits program design, enrollment, and administration services. It is not a law firm, an accounting firm, an insurance carrier, or a registered investment adviser. Nothing on this site is legal, tax, accounting, actuarial, or investment advice; nothing here is a tax opinion or a covered opinion; and no advisory, fiduciary, or attorney‑client relationship is created by reading this site, by submitting a census, or by contacting us. Boost Benefits does not represent clients before the Internal Revenue Service or any state taxing authority. Consult your own tax counsel and accountant before adopting any arrangement described here.
Figures are illustrations, not projections
Every dollar figure on this site is an arithmetic illustration computed from stated inputs. None is an average, an estimate of your result, a projection, a forecast, a guarantee, or a representation of results achieved by any client. Each assumes: 2026 federal rates; a combined employer FICA rate of 7.65%, being 6.20% Social Security on wages up to the $184,500 taxable maximum plus 1.45% Medicare with no cap; for employee-side and combined figures, a marginal rate of 23.90%, being 7.65% FICA plus a 12% federal bracket plus Michigan’s 4.25%, for a single filer earning approximately $62,000 in 2026 and taking the standard deduction; an employee whose wages remain below the Social Security taxable maximum for the full year; full-year participation with no mid-year election change; and an election properly made under a validly adopted written plan. Change any input and the figure changes, not proportionally, since the 6.20% component stops above the taxable maximum and marginal income tax rates step.
What is not included
No figure on this site assumes any reduction in federal unemployment tax. Although 26 U.S.C. §3306(b)(5)(G) parallels the FICA exclusion, FUTA applies only to the first $7,000 of an employee’s annual wages under §3306(b)(1), so the practical benefit is nil for most employees. No figure assumes any reduction in state unemployment tax; state taxable wage bases are generally low relative to typical wages, and treatment varies by state. No figure assumes any reduction in workers’ compensation premium; under NCCI Basic Manual Rule 2‑B‑1, employee‑authorized Section 125 salary reductions are included in payroll for premium purposes in most states, and independent‑bureau states may differ. The additional 0.9% Medicare tax on wages above $200,000, or $250,000 for joint filers, is an employee‑only tax and is excluded.
Indemnity-type benefits
Accident, critical illness, and hospital indemnity coverages pay fixed amounts on the occurrence of an event rather than reimbursing expenses actually incurred. Where premiums for such coverage are paid with pre-tax dollars through a cafeteria plan, benefit payments are generally includible in the employee’s gross income; this is the same analysis the Internal Revenue Service applied in CCA 201622031, CCA 201703013, and CCA 202323006. Whether any particular coverage in a selected package is funded pre-tax or post-tax is a plan-design decision, and you should obtain that answer in writing before enrolling employees.
Effects on employees
A salary reduction election reduces the employee’s taxable wages and therefore the employee’s withholding and FICA share, but the elected amount is still withheld from pay. Whether net pay lands approximately flat depends on the plan design and on whether the employee incurs and substantiates qualifying medical expenses. An employee who does not use the plan will take home less. Reducing wages subject to Social Security tax also reduces the earnings recorded for Social Security purposes, which may reduce an employee’s eventual retirement or disability benefit. Elections are generally irrevocable for the plan year absent a change in status permitted under Treas. Reg. §1.125‑4.
Conditions the result depends on
Any tax result depends on facts we cannot verify from a website: timely adoption of a written plan satisfying 26 U.S.C. §125(d)(1); prospective, documented elections; satisfaction of the nondiscrimination requirements of §125(b) on annual testing; correct payroll coding and reporting; actual participation; and, for any reimbursement claimed under §105(b), substantiation that the payment reimbursed expenses actually incurred for medical care within the meaning of §213(d). Failure at any of these points can render amounts includible in gross income and wages, with correction obligations extending to amended Forms W‑2 and 941 for open years.
An area of active IRS attention
The federal tax treatment of preventive care, wellness, and medical expense reimbursement arrangements has been addressed adversely by the Internal Revenue Service on multiple occasions, including Rev. Rul. 2002‑3, Rev. Rul. 2002‑80, CCA 201622031, CCA 201703013, and CCA 202323006. Arrangements that pay employees cash, or fixed amounts, without regard to medical expenses actually incurred have been treated as producing includible income and wages notwithstanding pre‑tax funding through a cafeteria plan. Descriptions of published guidance on this site are summaries provided for identification and are not a substitute for reading the guidance or obtaining advice on your own facts.
State variation
State income tax, unemployment tax, and workers’ compensation treatment of Section 125 salary reductions varies by jurisdiction, and some states do not conform to the federal treatment. Multi‑state employers should expect different results by state. Nothing here addresses local income taxes, paid‑leave contributions, or wage‑and‑hour consequences of a reduction in stated compensation.
Coverage and MEC status
The benefits described on this site are furnished through EHP Inc. and its carriers and provider networks, and are subject in all respects to the governing plan documents, certificates, formularies, and network availability, which control over any description here. Any insured components of the program are issued by licensed carriers and placed through EHP; Boost Benefits’ role is limited to feasibility analysis, enrollment support, and payroll coordination. The program is intended to sit alongside, and is not a substitute for, major medical coverage or minimum essential coverage. No representation is made that any package constitutes minimum essential coverage for purposes of 26 U.S.C. §4980H or any other provision; request that determination in writing and obtain your own counsel’s review before relying on it.
Relationship of the parties
Boost Benefits acts on behalf of EHP Inc. in presenting this program to employers. References on this site to being “partnered” with EHP describe a commercial collaboration and are not a representation that the two companies are partners or joint venturers in law. The plan, the coverage, the provider networks, and the clinical services described on this site are provided by EHP and its carriers and providers. Boost Benefits does not provide, underwrite, or insure them, and its authority is limited to what EHP has granted it in writing. The two companies are separate entities; neither is responsible for the obligations, acts, or omissions of the other except to the extent the law of agency provides. Boost Benefits is compensated in connection with the placement and servicing of this program, which you should weigh when considering anything it recommends, and which is a further reason to obtain your own tax and legal advice. EHP, EHP Inc., and Essentials Health Plan are marks of their respective owners and are used for identification only. References to third‑party publications, including analyses published by professional services firms, are for identification and do not imply any endorsement, affiliation, or review of this site by those firms.
Currency and changes
Rates, wage bases, statutory and regulatory references, and third‑party program descriptions are stated as of August 2026 and are subject to change without notice. Tax law, published guidance, insurance products, and provider networks change; this site is not updated continuously and may not reflect current law or current program terms. Boost Benefits disclaims any obligation to update it, and disclaims all warranties, express or implied, as to the accuracy or completeness of its contents.