Howard Francis (650) 449-6888 Howard@CPAddc.com
Retention Strategy Saves on Payroll Taxes & Wages
Minimum 25 full time W-2 employees
Companies, for profit, non-profit, private, or public sector can implement a GPR as a savings tool. This program frees up federal tax dollars for employers. This is done at no cost to the business.
1. The average net FICA savings is $500 to $600 per annum per employee.
* The Employer in applicable States could also save an average of 20% - 30% in gross payroll that the employer would not owe on worker’s comp.
Employers can then utilize the new found savings in several ways. It can go back into their bottom line or a lot of employers will choose to reallocate the new found monies toward things in their business that are important but might have been cost prohibitive in the past.
Frequently Asked Questions
Is this Health Insurance?
No. This program is a voluntary employee benefit program.
Is this a legal federal program?
Yes. This is a tax qualified Self-Insured Medical Reimbursement Plan with a wellness focus that uses tax advantage provisions under the Internal Revenue Service codes “Section 125 Cafeteria Plan and codes 105-11(SIMRP), 106, and 213(d) plus ACA wellness rules.
Does this program work with a payroll service?
Yes. We work with all the top payroll companies. Our 3rd party administrator provides all the necessary documents to implement the program with your payroll service.
Does it affect my company-sponsored group health insurance?
No. This program does not interact with your group medical plan.
Do I need to change my workers’ comp policy?
No. Your policy will remain the same except the amount used for gross wages in the calculation will be lower; ultimately reducing your premiums.
How much does it cost?
There are no out-of-pocket costs for participating in the federal program.
Who picks the insurance?
The employee selects the policies that want to buy using the non-taxable allowance.