Payroll Tax Savings for Restaurants & Hospitality
A Zero-Cost Way to Retain Staff and Recover Thousands in Payroll Taxes
Hiring is hard. Retention is harder. If you run a restaurant, hotel, bar, or food service group, you know exactly how expensive it is to keep W2 employees — and how fast payroll taxes eat into already thin margins.
But here’s the good news:
You can recover $600–$800 per employee, per year in payroll tax savings —
Without raising wages, changing your insurance, or spending a dime.
It’s called a Preventive Care Management Plan (PCMP) — and when structured properly, it’s fully IRS- and ACA-compliant.
What Is It?
A PCMP is a zero-net-cost wellness benefit that provides your team access to:
24/7 telehealth and health coaching
Preventive screenings and wellness education
Support for mental health, substance use, stress, and more
Your business enrolls eligible W2 employees and shifts a portion of payroll to fund the benefit — which reduces your FICA tax obligation without lowering take-home pay.
The result? FICA tax savings + better employee benefits — no cost, no disruption.
Real-World Example
Let’s say you operate a multi-location casual dining restaurant with 60 W2 employees (servers, line cooks, bartenders, dishwashers, host staff).
60 employees × ~$600 = $36,000/year in tax savings
If you run a hotel with 120 employees across housekeeping, front desk, catering, and operations?
120 × ~$600 = $72,000/year back into your operating budget
That’s real money — especially in an industry where profit margins often sit between 3% and 6%.
Why It Works So Well in Restaurants & Hospitality
1. It Helps You Compete for Labor
In an industry where many employers offer no benefits at all, providing even a modest wellness plan can set you apart — especially when wages are flat across competitors.
2. It Works for Hourly and Tipped Staff
Unlike traditional benefits that require full-time or salaried status, PCMPs are designed for hourly, part-time, seasonal, and tipped workers.
Yes — your dishwashers and bussers can participate.
3. It Doesn't Disrupt Your Existing Insurance
Whether you offer health coverage, a MEC plan, or nothing at all — the PCMP can layer on top without any conflicts or reporting burdens.
4. It's Fully Administered
No extra payroll work. No new vendors to manage. No compliance guesswork. You just approve the implementation, and the plan runs in the background — integrated with your payroll provider.
Is It Legal?
Yes — absolutely. The PCMP structure is compliant with IRS Section 125, ACA requirements, and federal FICA exemptions — when implemented by a compliant vendor.
Ficava only works with PCMP providers that:
Deliver full plan documentation and legal support
Handle all plan administration and reporting
Provide proof of benefits delivered to employees
Maintain HIPAA, IRS, and ACA compliance standards
This isn’t a workaround or gimmick. It’s a vetted tax strategy used across many high-turnover industries.
Common Questions from Restaurant Operators
Q: Do employees lose any take-home pay?
A: No. Each dollar redirected into the plan is reimbursed to the employee in the same paycheck — the benefit is layered in, not deducted.
Q: What if my employees already have health insurance?
A: Great — the PCMP is not insurance and doesn’t interfere with existing coverage.
Q: What if I don’t offer insurance at all?
A: No problem. The PCMP is standalone and fully compliant even for businesses without group health plans.
Q: Do tipped employees qualify?
A: Yes — so long as they’re on W2 payroll, they’re eligible regardless of how their pay is structured.
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
Want to See What You Could Save?
If you employ 10 or more W2 workers in your restaurant, hotel, or hospitality business, you may be eligible to recover thousands in payroll tax savings — while giving your team a benefit that actually matters.