Payroll Tax Strategy for Construction & Trades
Lower FICA Costs. Keep More Cash. Give Your Crew Something That Sticks.
In construction, profits are made (or lost) at the margins — and those margins are tighter than ever. Materials are up. Labor’s hard to find. And if you’re like most contractors, payroll is one of your biggest expenses.
But here’s something most GCs, subs, and trade business owners don’t realize:
You may be able to recover $600–$800 per W2 employee, per year — without cutting hours, raising prices, or laying anyone off.
It’s called a Preventive Care Management Plan (PCMP) — and it’s completely IRS- and ACA-compliant when done correctly.
What Is It?
The PCMP is a wellness-based benefit that gives employees access to things like:
Telehealth and behavioral coaching
Preventive care services (screenings, risk assessments)
Lifestyle support programs (nutrition, substance use, sleep)
It’s not insurance — and it doesn’t replace any coverage you already offer. It’s a separate, legally recognized benefit that lets you move part of your payroll into a pre-tax benefit structure. The result?
Employees get a legitimate benefit
It costs your business nothing
Real-World Example
Let’s say you run a midsize concrete company with 35 employees on W2. All are eligible for the plan.
35 employees × ~$600 savings = $21,000/year back to your business
If you’ve got 100 people on payroll across multiple trades (framing, finish, sitework, etc.), that’s $60,000+ per year in recovered cash — just by restructuring part of payroll.
You’re not writing a check. You’re just keeping more of the money you’re already paying.
Why This Works Especially Well in Construction
1. You Have W2 Employees
This program is built for employers who run legit payroll and want to keep their best people on it.
2. You’re Competing for Labor
Every shop is hiring. Offering even a small health benefit — especially one they don’t get elsewhere — is a big deal for hourly crews, apprentices, and non-union labor.
3. Margins Are Tight
The average net margin in construction is 3–6%. If you can recover $30k–$100k annually without raising bids or cutting materials — that’s real leverage.
4. You Don’t Want Admin Headaches
You don’t have time to manage another plan. Good news — the PCMP is fully administered, with no lift on your side. Employees opt in, services are handled, and compliance is baked in.
Is It Legit?
Yes — as long as it’s structured and executed correctly. We work only with vetted PCMP providers who offer:
Full IRS and ACA compliance support
Plan documentation and service delivery
No disruption to existing insurance
Automated payroll deduction + reimbursement handling
We’ve reviewed the legal frameworks and guidance. This is not a workaround or tax trick — it’s a legitimate structure used by businesses across the country, especially in blue-collar industries like yours.
What If…
Q: My guys don’t use benefits — will they care?
A: Many of the included services (like 24/7 telehealth or mental health coaching) are easy to use and valuable even for people without insurance. Plus, it signals that you care about their long-term well-being.
Q: What if I already offer insurance?
A: The PCMP works alongside it. There’s no conflict.
Q: What if I don’t offer insurance?
A: That’s fine too. The PCMP is not considered a “minimum essential coverage” plan and doesn’t trigger ACA mandates.
At a Glance
Your Gain
~$600+/employee/year in FICA savings
Better retention & morale
Administered for you
Your Cost
$0 net cost
No disruption to payroll
No insurance requirement
Let’s Run the Numbers
If you have 10+ W2 employees, this program could put thousands of dollars back into your business annually — while giving your crew a benefit they’ll actually use.
No insurance changes. No admin hassle. No sales pressure.
Just a quick look at the numbers to see if it fits.