Genus Credit Services

How to lower payroll taxes, create happier employees and not increase wages

Discover how the new wellness benefit program can help small and mid-sized businesses retain workers, cut payroll taxes, and boost employee take-home pay. As businesses across Michigan continue to struggle with employee retention and rising healthcare costs, a new supplemental wellness benefits program aims to help employers improve benefits while reducing payroll taxes.

Pinckney-based financial services consultant William T. Shaw of Genus Credit Services has partnered with ACA Solutions to offer the Wow Health Wellness Supplemental Health Program, an IRS-compliant benefits platform designed to help employers strengthen their workforce benefits while potentially saving thousands of dollars annually.

"Many small and mid-sized companies want to offer better benefits but simply can't afford the rising cost of traditional health plans," Shaw said. "This program gives employers another option that improves employee retention while also creating meaningful tax savings."

Tax Savings for Employers

One of the program's biggest advantages is its potential to save on payroll taxes.

Employers may qualify for Federal Insurance Contributions Act (FICA) tax credits of up to $1,200 per employee annually.

In many cases, Shaw said the typical savings averages about $956 per employee per year.

For example, a company with 25 employees could save roughly $23,900 annually. The program is structured to remain IRS compliant.

Employees may see increased take-home pay and pre-tax pay for certain health expenses, making the program attractive for workforce retention.

Employees who participate in the program may see a modest increase in their take-home pay. In addition, certain health-related expenses are paid pre-tax rather than with take-home pay.

For workers dealing with rising living costs, even small increases in take-home pay can make a noticeable difference.

Employees value programs that show their well-being matters, making them feel appreciated and more engaged in their work.

Coverage For Everyday Healthcare Costs

Unlike traditional insurance plans that primarily cover major medical expenses, the wellness program focuses on everyday healthcare needs that many employees pay for out of pocket.

Those services can include:

• Vision care
• Dental services
• Medical co-pays
• Preventive healthcare services

Participants can choose from a "cafeteria-style" menu of wellness programs tailored to their personal health needs.

The goal is to encourage preventive care, which healthcare experts say can reduce long-term costs while improving overall employee health.

Workforce Retention Becoming a Top Priority

Employee retention has become a growing challenge across many industries, particularly in retail, service businesses, and other sectors where benefits are often limited.

Companies that provide stronger benefits packages are often better positioned to recruit and retain employees in a competitive labor market.

Shaw emphasized that the company manages all administrative tasks, helping employers feel supported and confident in adopting the program.

Shaw suggests that programs like this enable businesses to proactively support employees while managing expenses effectively, fostering a sense of responsibility and leadership.

The unique feature of this ACA solution is that it can also apply to part-time employees.

The Bottom Line

As healthcare costs continue to climb, more employers are exploring alternative benefit programs that improve employee health while reducing financial pressure on businesses.

Programs that combine workforce benefits, tax savings, and increased employee take-home pay are attracting growing interest from small- and mid-sized companies looking for practical ways to strengthen their workforces.

For employers, Shaw said the formula is simple: healthier employees and stronger businesses.

"When you can improve benefits, help employees financially, and save money for the company at the same time," he said, "that's a win for everyone."

To fully understand the tax implications, Shaw will arrange an introductory call with the ACA Solutions CPA lead tax team to determine whether your company qualifies and to obtain definitive tax advice.

Call 810-423-1420 or email today!