IMPACT Business Solutions Group, LLC. is a privately owned company, with its headquarters in Murrieta, CA. The IMPACT Business Solutions Group Management Team brings with them over 30 years of combined experience in operational management of insurance sales, marketing, employee benefits, and individual or group health plans. IMPACT Business Solutions Group, by partnering with the highest quality strategic partners, will provide proven industry leading cost reduction programs which will save your company from several thousands to potentially millions of dollars (depending on the size of the company) by reducing your costs, increasing efficiencies, and effectively working with the current tax laws of our great country. We are experts in helping your company’s bottom line to be more profitable!
*Disclaimer – Impact Business Solutions Group and its agents are independent brokers/agents and only provides assistance with the procurement of insurance products on behalf of individuals and companies. Impact Business Solutions Group is not a CPA firm, finance, tax, insurance, law, or wellness firm, and nothing contained herein can be construed as legal, financial, accounting, or tax advise. IRS Circular 230 Disclosure – To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (Including attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

For almost 50 years, employers have utilized health insurance programs and deferred compensation programs to reduce payroll taxes and free up dollars for employees. This program combines those principles with the latest developments in wellness tax benefits to give savings back to companies and increase benefits to their employees. This can all be accomplished without affecting the employee’s net take home pay or adding cost to the company’s bottom-line.

On January 1, 2014, a new tax incentive was created by congress which now provides incentives to both employers and employees that participate in a participatory compliant wellness program. It is the position of Congress, that education and participation in an approved compliant wellness program will lead to a reduction in the nation’s overall healthcare costs.

Participatory Wellness Programs are programs that either do not provide a reward to employees or do not include any conditions for obtaining a reward that are based on an individual satisfying a standard that is related to a health factor. In addition, participatory wellness programs must be made available to all similarly situated individuals, regardless of health status. Participatory Wellness Programs are not Health-Contingent Wellness Programs that require an individual to satisfy a standard related to a health factor to obtain a reward.

It is estimated that over 90% of today’s employers have not been informed of these tax breaks.

Our current Participatory Compliant Wellness Program includes services that qualify as “medical care” and is considered a “health plan.” Our program involves “medical care” that is individualized and is provided by trained professionals. “Medical Care” under IRC 213(d) is defined to mean amounts paid for: (a) the diagnosis, cure, mitigation, treatment, or prevention of disease, or amounts paid for the purpose of affecting any structure or function of the body, (b) amount paid for transportation primarily for and essential to medical care referred to in (a), and (c) amounts paid for insurance covering medical care referred to in (a) and (b). *This program does not satisfy the Minimum Essential Coverage (MEC) requirements for Major Medical Health Insurance under the Affordable Care Act (ACA).

All qualified employees are dependent upon their filling status which will see Pre-Tax Wellness Contribution between $800 per month per qualified single employee, to $1125 per month per employee who is either married or family.

This Self-Insured plans requires employee participation, which then allows eligible reimbursements. These are defined in the Plan Document. Employees receive a fixed reimbursement per pay period, on a tax-free basis and usually no reduction in their take home pay. Employer’s have FICA savings per each participant. In addition, the plan provides additional benefits to employees with little or no reduction in the employees’ take-home-pay.

  • Employees must average working 30 hours per week or average 130 hours per month, consistently, to qualify for this program.
  • Employees must be enrolled in an employers group major medical health plan either at work, with their spouse or adults 27 and under must be on their parents employers major medical plan.
  • Employees that are receiving a subsidy through a State or Federal exchange are not eligible because it would mean double-dipping per IRC tax codes.
  • Owners of the company, including their spouse and heirs, do not qualify for this program unless their share is 2% or less.
  • Tipped employees without a salary base, do not qualify for this program.
  • Employees who are 1099 independent contractors do not qualify for this program.

Any pre-tax reduction in employee’s adjusted gross income will lower the amount of payments to Social Security. (Examples: Dental, Vision, 401K, group health insurance) to offset this reduction in Social Security, the wellness reserve can be used to accumulate cash value that in almost all cases will provide greater retirement income and a higher level of security for the employee and for their family. Please consult with a tax professional such as a CPA or tax attorney if there are any further questions.

*Disclaimer – Impact Business Solutions Group and its agents are independent brokers/agents and only provides assistance with the procurement of insurance products on behalf of individuals and companies. Impact Business Solutions Group is not a CPA firm, finance, tax, insurance, law, or wellness firm, and nothing contained herein can be construed as legal, financial, accounting, or tax advise. IRS Circular 230 Disclosure – To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (Including attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

The program answer is yes! However, placing the wellness reserve would require to have that money taxable on their paycheck. The wellness reserve is highly recommended only to be used to purchase supplemental insurance coverage through payroll deduction. by doing this you can use the wellness reserve post-tax tax-free to purchase qualified ancillary services. As long as the employee doesn’t exceed their wellness reserve allowance, their take-home pay will remain the same as it was before this program.

*Disclaimer – Impact Business Solutions Group and its agents are independent brokers/agents and only provides assistance with the procurement of insurance products on behalf of individuals and companies. Impact Business Solutions Group is not a CPA firm, finance, tax, insurance, law, or wellness firm, and nothing contained herein can be construed as legal, financial, accounting, or tax advise. IRS Circular 230 Disclosure – To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (Including attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

Under IRS Section 125, employees are able to receive certain tax incentives, based on certain participation in the compliant wellness activities. This benefit amount will not exceed 50% of member’s health care cost which includes deductibles, co-insurance, premiums, screenings and other health related prevention methods. Actuaries have studied and run comparisons between similar large groups that have compliant wellness programs and those similar large groups that do not have compliant wellness programs. Over a length of time, defined savings show that those large groups with a compliant wellness program have significant health care cost savings compared to the non-wellness groups. All of these calculations of savings and program costs have gone into defining the amount of Pre-Tax Deductions allowed for employees.

1) The Dept. of HHS in 2016 said the average cost for all health-related expenses (ins, drugs, etc) is $10,345 for every man, woman, and child in the U.S. (July Report)

2) The US Census data says the average household size in the U.S. is 2.54 persons. 2.54 x $10,345/12 months is $2,190 per month per household.

3) Designating $800 pep single and $1,125 (other) is below the national averages and is reasonable in relation to government reports on healthcare cost.

*Disclaimer – Impact Business Solutions Group and its agents are independent brokers/agents and only provides assistance with the procurement of insurance products on behalf of individuals and companies. Impact Business Solutions Group is not a CPA firm, finance, tax, insurance, law, or wellness firm, and nothing contained herein can be construed as legal, financial, accounting, or tax advise. IRS Circular 230 Disclosure – To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (Including attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

This type of program using Section 125 Pre-Tax Deductions with companies using a Self-Insured Medical Expense Reimbursement Plan have been around since 1978. These programs provide wellness reserve accounts, based on certain participation guidelines in the wellness activities. Employees may use their wellness reserve accounts to purchase ancillary products outside of this plan and pursuant to the company’s cafeteria plan. These products will not lower employee’s take home pay unless they purchase additional services beyond their wellness reserves.

*Disclaimer – Impact Business Solutions Group and its agents are independent brokers/agents and only provides assistance with the procurement of insurance products on behalf of individuals and companies. Impact Business Solutions Group is not a CPA firm, finance, tax, insurance, law, or wellness firm, and nothing contained herein can be construed as legal, financial, accounting, or tax advise. IRS Circular 230 Disclosure – To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (Including attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.