Preventive care benefits plan
Better preventive care for your team, funded by payroll tax efficiency.
A Section 125 preventive-care plan expands access to real care while reducing healthcare-related cost for the business and the employee. It is structured around established tax rules: pre-tax payroll structuring lowers FICA exposure, and the savings fund a centralized set of preventive health services. It can stand alone or sit alongside your existing major medical plan.
Measurable impact
What the numbers typically look like.
- Up to
- $1,186Average net FICA tax savings per full-time W-2 employee, per year. A tax saving, not a credit — realized every payroll run (about $45 per employee on a bi-weekly cycle).
- Employees keep
- $250–$350Average employee tax savings per month, repurposed to fund their benefits rather than coming out of take-home pay.
- Eligible from
- 30 hrs / $26KFull-time W-2 employees averaging 30 hours per week and earning at least $26,000 per year typically qualify.
Figures are averages and vary with your census, wage levels, and payroll cadence. Your actual numbers are modeled during the review.
Overview
Pre-tax payroll structuring, paired with a real set of preventive services.
By lowering taxable wages and reallocating the resulting savings, employers reduce FICA tax exposure while employees gain access to care they will actually use.
Virtual primary care, urgent care, mental health support, and prescription coverage are delivered through one centralized platform rather than a patchwork of vendors.
The plan complements existing coverage or functions as a stand-alone solution, and remains designed around §125, §104(a)(3), §105(b), §106(a), and §213(d) guidelines, as well as ERISA and ACA rules.
KeptMargins is an independent practice. We partner with benefits providers, including Irongate, who handle plan documents, compliance, and administration — but we answer to your business.
How it works
How the savings actually work.
The program applies a fixed pre-tax deduction to each participating employee's paycheck. That lowers taxable wages, which reduces the employer's FICA liability. The 7.65% rate does not change — it is applied to less gross taxable income. The employee then receives a non-taxable reimbursement that restores take-home pay, while the tax savings subsidize benefits.
- 01
Pre-tax deduction
A fixed pre-tax deduction is applied to each participating employee's paycheck, lowering taxable wages.
- 02
Employer FICA savings
The FICA rate stays at 7.65% — it is simply applied to a lower amount of gross taxable income, so the employer's liability drops.
- 03
Post-tax reimbursement
A non-taxable post-tax reimbursement restores the employee's take-home pay, so paychecks do not shrink.
- 04
Benefits are funded
The tax savings created along the way fund the provider fees and the employee's preventive-care and ancillary benefits.
Eligibility
Is your business a fit?
On the employer side
- 15 or more W-2 employees on payroll.
- Runs stand-alone or alongside an existing major medical plan.
- Net FICA savings of up to $1,186 per full-time W-2 employee per year — a saving, not a credit, realized every payroll run.
- You can define participation guidelines around your own workforce structure.
On the employee side
- Full-time W-2, averaging 30 hours per week.
- Earning a minimum of $26,000 per year.
- $250–$350 in average monthly tax savings, repurposed to fund their benefits.
- Take-home pay is restored through a non-taxable reimbursement — paychecks do not shrink.
Included benefits
A centralized preventive care experience.
All-in-one access to preventive and early-intervention services through a single platform — urgent care, primary care, mental health, pharmacy, weight health, and labs.
Urgent care
Unlimited virtual urgent care visits per enrolled household member per year, with 24/7/365 access and same-day appointments for non-emergencies.
Primary care
Unlimited virtual primary care visits per year for ongoing health management and prevention, with the option to see the same provider over time.
Mental health
Unlimited therapy visits per member per year, rapid support for urgent needs, and provider matching so employees are not left searching.
Pharmacy & urgent Rx
1,000+ commonly prescribed generic medications by home delivery, plus 70+ urgent medications available at 70,000+ retail pharmacies.
Weight health
Personalized weight health support with coaching, provider consultations, and tools including FITon, MyFitnessPal, and Withings integration.
Lab testing
Quest diagnostic lab testing at no cost to the employee after 90 days of enrollment on the plan.
Additional benefits
What else the enrolled employee can get.
Availability depends on the program selected during your review and on available tax-savings funds.
MEC (Minimum Essential Coverage)
$0-copay primary care (3 visits per year), $0-copay access to 3,500 medications, plus urgent care visits and Quest lab testing as available tax-savings funds allow.
Hospital Bill Eraser
Reduces medical expenses with an average 35% savings on hospital bills, with transparent nationwide coverage that takes the financial pressure off employees.
Whole life insurance policy
Whole life coverage up to $150,000 guaranteed issue, with average cash value growth of 4–7% after year two.
Implementation
A quick and simple 3-step process.
- 01
Discovery & eligibility review
We review your census and payroll structure to confirm eligibility and model the realistic savings for your specific headcount.
- 02
Implementation & payroll setup
The provider handles plan documents, compliance, and the technical payroll setup for deductions and reimbursements.
- 03
Employee onboarding
Employees enroll through a guided digital onboarding flow. Most companies are up and running within 2–3 weeks.
Go-live journey
Your journey to go live.
From final paperwork through payroll setup and employee onboarding, the provider — for most of our groups, Irongate — guides each phase so the program launches smoothly for your team and your employees.
- 1
Census collection
Gather employee information and return the census — typically 3–5 days of work on your side.
- 2
Onboarding & town hall
Benefits are communicated clearly before go-live so employees understand exactly how the program works.
- 3
Payroll call
Deduction and reimbursement setup is confirmed and a mock payroll is run before the first live cycle.
- 4
Ongoing optimization
Invoices, policies, and new hire and termination processes are reviewed, and any remaining questions get closed out.
FAQ
Everything you need to know about the plan.
Does it replace our current insurance?
No. It stacks on top of existing coverage and can also act as a stand-alone benefit when no current coverage is in place. Employers who already offer major medical use it to add value without raising premiums.
Does it cost anything out of pocket?
No. The program is funded through a pre-tax structure that reallocates part of the employee's tax savings to subsidize benefits, which is why it is generally described as no net cost to the business.
Is it compliant?
Yes. The program is designed around IRC Sections §125, §104(a)(3), §105(b), §106(a), and §213(d), as well as ERISA and ACA regulations. Plan documents and administration are handled by licensed third-party providers.
What is a Section 125 plan?
A Section 125 plan — also called a cafeteria plan — is an IRS-recognized arrangement that lets employees pay for certain qualified benefits with pre-tax dollars. Because those contributions come out before federal income tax and FICA are calculated, both the employee and the employer see lower payroll tax exposure on that portion of wages.
How does a preventive-care program use Section 125?
Employee contributions toward the preventive-care program run through the Section 125 plan on a pre-tax basis. The payroll tax savings those contributions create typically offset the cost of the program and the provider's fees.
Who is eligible to participate?
Full-time W-2 employees working an average of 30 hours per week and earning at least $26,000 annually are typically eligible. Employers can define participation guidelines based on their workforce structure. Our programs are built for employers with 15 or more W-2 employees on payroll.
What services are included in the plan?
Virtual primary care, urgent care, mental health support, prescription coverage, weight health resources, and Quest lab testing, all delivered through one centralized platform. Additional benefits such as MEC, hospital bill reduction, and whole life coverage are available depending on the program selected.
How quickly can we implement the plan?
Implementation is fast and streamlined. Onboarding, documentation, and compliance are handled by licensed third-party providers, and most companies are live within 2–3 weeks of the census being returned.
What happens on a review call?
A straight 15-minute conversation. We look at your headcount and payroll cadence, walk the savings math for your actual census, and tell you plainly whether this is a fit — no obligation and no cost.
Next step
See what your team could gain.
A benefits review is a straight 15-minute conversation — no obligation and no cost. We walk your payroll math against your actual headcount and tell you plainly whether this fits, without disrupting current coverage.
Prefer email? keptmargins@outlook.com
This page is general information for employers, not tax or legal advice. KeptMargins is not a tax advisor. Savings figures are averages that vary by census and payroll structure — confirm treatment of pre-tax contributions with your CPA or payroll provider before implementing a plan.