Payroll Tax Strategy for Manufacturing & Industrial Employers
Reduce FICA Costs. Improve Worker Retention. And Keep Production Moving — Without Adding Cost.
Whether you're running a fabrication shop, packaging facility, machine shop, or production plant, you know the formula: keep your lines running, your people safe, and your overhead lean.
But that’s easier said than done when:
Entry-level turnover eats into training time
Skilled labor is harder to come by
And payroll taxes take a larger bite each quarter
The Preventive Care Management Plan (PCMP) offers a compliant, zero-net-cost solution that puts real money back into your operation while delivering value to your workforce.
What Is a PCMP?
The PCMP is a pre-tax, wellness-focused benefit plan that qualifies under IRS Section 125. It gives your W2 employees access to services like:
Preventive screenings
24/7 telehealth & behavioral support
Coaching for stress, sleep, nutrition, and injury prevention
Substance use education & EAP-style guidance
It’s not a substitute for health insurance. It’s a layered benefit that requires no changes to existing coverage — and triggers meaningful payroll tax savings on your end.
The Financial Impact
Here’s what you could recover, just by offering the plan to your existing W2 team:
20 employees = ~$12,000/year saved
50 employees = ~$30,000/year saved
150 employees = ~$90,000/year saved
And this isn’t a tax credit or delayed refund — it’s reduced FICA tax liability, recovered in real time with each payroll cycle.
Why It Works in Manufacturing & Industrial Settings
1. You Have W2 Headcount — Often Large
If you’ve got multiple shifts, line operators, warehouse support, and skilled trades on payroll, this plan scales with you. The more W2s, the greater the savings.
2. It Enhances Retention Without Raising Wages
In a labor market where entry-level workers jump ship for 50 cents more an hour, offering a legitimate, easy-to-use benefit can tip the scale.
Your team gains something they can actually use — without increasing your total comp spend.
3. It Reinforces Your Safety & Wellness Culture
Many manufacturers invest in PPE, training, and safety compliance — but have limited options for personal wellness support that’s accessible to all staff.
This program shows your team that you care about more than just uptime — you’re supporting them off the floor, too.
4. It’s Hands-Off for You and HR
PCMPs are fully administered:
Automatic reimbursements to employees
No claims, no internal paperwork, no burden on HR or accounting
Is This Compliant?
Yes — when implemented correctly. PCMPs are compliant with IRS and ACA regulations and rely on legal benefit structures used by companies across the country. Ficava only works with vetted PCMP vendors who:
Provide full legal documentation & audit-ready records
Ensure actual delivery of benefit services
Handle all plan administration and employee communication
Work seamlessly with your payroll system or provider
FAQs from Plant Managers & Owners
Q: Is there any risk to the company?
A: When structured properly, no. This is not an aggressive tax shelter or a fringe benefit workaround — it’s a pre-tax wellness benefit backed by compliance support and plan documentation.
Q: What if we already offer insurance?
A: The PCMP complements — it doesn’t replace — existing coverage. It works as a separate, standalone wellness plan.
Q: What if some employees opt out?
A: That’s fine. You’ll only see savings based on actual participation. There’s no penalty or minimum participation required to offer the plan.
Quick Snapshot
What you gain:
~$600+/employee/year in FICA savings
Better retention & morale
Administered for you
What it costs:
$0 net cost
No disruption to payroll
No insurance requirement
Get a Custom Savings Estimate
If you’ve got 15 or more employees on W2 payroll — from the floor to the warehouse to logistics — there’s a strong chance your company could recover tens of thousands in payroll tax annually, just by offering this fully managed benefit.