Employee contributions come out pre-tax. That lowers the wage base both the agency and the caregiver pay FICA on. The payroll tax savings is what funds the benefits.
The plan is built to run at zero net cost to the agency. Most caregivers see the same or a slightly larger net paycheck than before.
Section 125 has been in the Internal Revenue Code since 1978. It is the same provision that has funded pre-tax benefits for a large share of American employers for decades. We walk through how a Section 125 wellness plan works for a home care agency in more detail.
Most owners have already run these numbers. Here is what they found.
A $2 an hour raise on a 30-hour caregiver is $3,120, plus 7.65 percent employer FICA, so $3,359 per caregiver per year. Across 40 caregivers that is $134,360.
We collect basic anonymized employee data and run an analysis to calculate employee and business tax savings.
We share a transparent proposal with you showing savings, employee benefits, and answer all questions.
The agreement is just that: an agreement for us to take care of you and your employees. Zero setup fees, simple 60-day cancellation, zero capital cost for the business.
We send clear, compliant communications to your employees explaining their new benefits: what they get, how to access it, and why their take-home pay increases.
Benefits activate. Employees log in to access benefits for themselves and their families. Your payroll software takes care of all appropriate calculations.
Move three sliders and see what your agency already pays in employer payroll tax, what turnover is costing you, and what could be redirected instead.
Open the estimatorHome Care Wellness provides marketing and enrollment support and does not provide legal, tax, accounting or health advice. The Unify Wellness Plan is administered by UnifyWell. Savings figures in any proposal are estimates based on the payroll information provided and are not guaranteed. Federal and state tax laws change. Consult your own CPA or attorney before enrolling.