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The Health Compass Wellness program deductions start with a pre-tax deduction for the Plan premium (SIMERP).
Any non-401k pre-tax deduction – medical, dental, vision, SIMERP, etc – lowers a participant’s SS/Medicare taxable wages. These taxes are often referred to as FICA.
An employee’s FICA taxes are matched by their employer and both amounts get forwarded to the IRS. If an employee’s FICA taxes are reduced, so are the FICA taxes for the employer! A $100/week reduction in an employee’s FICA wages means the employee pays $7.65 less per week in FICA taxes, and by consequence the employer also pays $7.65 less taxes!
A win for the employee, is a win for the employer!