Reduce Employer FICA Taxes in Indiana
Most CFOs in Indiana overlook the payroll tax savings available through an IRS-aligned Section 125 + Section 105(b) structure. With the WIMPER framework, employers can reduce FICA liability, increase employee benefit value, and stay fully compliant with ACA, HIPAA, and ERISA.
Every year, employers in Indiana remit millions of dollars in avoidable FICA payroll tax. By structuring benefits through a cafeteria plan under IRC §125 and reimbursing §213(d) medical care through a Self-Insured Medical Reimbursement Plan (SIMRP) under §105(b), you can convert taxable compensation into funded, preventive-care benefits.
State Tax Factor in Indiana:
Indiana has a flat state income tax rate of 3.05%.
Even for states with no income tax, federal FICA recovery alone produces material improvement to EBITDA. And in high-tax states like Indiana, employees gain even more net-pay value.
Potential Annual Savings for Indiana Employers
| Eligible Employees | Avg Salary | Participation | Est. Annual Employer FICA Savings |
|---|---|---|---|
| 50 | $45,000 | 65% | $36,400 |
| 100 | $45,000 | 65% | $72,800 |
| 250 | $45,000 | 65% | $182,000 |
Based on a conservative ~$1,120 per enrolled employee per year in FICA reduction.
Compliance Safeguards
This structure is not fixed indemnity.
WIMPER avoids double-dip taxable cash benefits and is fully aligned with:
- IRC §125 — Pre-tax cafeteria plan elections
- IRC §105(b) — Tax-free reimbursement of §213(d) care
- IRC §213(d) — Qualified medical care (e.g., virtual urgent care, mental health, chronic care support)
- ACA, ERISA, HIPAA documentation standards
Real Care + Supplemental Benefits
Employees receive:
- $0 copay virtual urgent care
- Virtual primary care & mental health
- Chronic care coaching
- Supplemental protection (accident, CI, disability, life)
This enables better total compensation value without “take-home” cuts.
Run Savings Estimate → Request Verified ProForma → Download Executive Brief PDF →
Does FICA savings still apply if Indiana has no income tax?
Yes — savings occur at the federal level (FICA). State tax only affects employee net-pay enhancement.
Does this affect our group medical plan?
No. This program sits alongside your existing plan.
Is this one of the “wellness programs” the IRS warned about?
No. WIMPER is based on reimbursable §213(d) medical care, not fixed indemnity cash incentives.