IHB is a comprehensive preventative health care program designed to work alongside existing insurance plans. It makes prioritizing preventative care simple and rewarding for your employees. Innovation Health Benefits is a fully HIPAA-compliant participatory medical expense reimbursement wellness plan that is compliant with IRS codes 125, 216, and 105 and backed by a legal protection plan.

 

IHB is designed to enhance the health and well-being of your workforce with no out-of-pocket cost to you or your employees. It includes a variety of wellness benefits.

 

This example demonstrates how an employer will save money on FICA taxes with IHB. Let’s analyze the difference between having and not having IHB for an employee who has a pre-tax gross income of $2600 per month. Without IHB, the FICA tax is calculated on the full gross income of $2600, resulting in an employer FICA contribution of $198.90. Now with IHB, a pre-tax premium of $1200 is deducted from the employee’s gross income, reducing the taxable income to $1400. The FICA tax is now calculated on the reduced taxable income of $1400, resulting in an employer FICA contribution of $107.10. The employer now realizes a gross monthly savings of $91.80, totaling an annual savings of $1,101.60.

 

The IHB program fee is $35 per employee per month, totaling $420 per year. In the example, the net employer savings after the program fee is $56.80 per month and $681.60 annually.

 

This example of an employee making $2600 monthly demonstrates how, with IHB, the employee will realize an increase in net take-home pay when enrolled in the program. Without IHB, the taxable withholdings are calculated on the full gross monthly income of $2600, resulting in withholdings of $439.17. With IHB, a pre-tax premium of $1200 is deducted from the gross income, reducing the taxable income to $1400. The tax withholdings are now calculated on the reduced taxable income of $1400 at the rate of $162.13. The employee realizes a monthly reduction in withholdings of $277.04.

 

The employee then receives a claim payment of $1000. This premium payment is for the employee’s participation in the IHB program, which may include activities such as telemedicine, health coaching, EAP services, or any activities or services included in the program. Without IHB, the employee’s net take-home pay would be $2,160.83. With IHB, the employee’s net take-home pay will be $2,237.87, resulting in an increase in net take-home pay of $77.04 monthly and $924.48 annually.

 

IHB goes beyond basic wellness programs by offering an extra layer of security and compliance. This has been achieved with a full audit by a law firm to ensure IRS compliance. IHB provides legal protection of up to $500,000 for your company and $10,000 per employee to shield you from potential financial burdens in case of a government audit. The law firm proactively monitors legal developments to address potential issues before they arise. You can offer a compliant wellness program with peace of mind.