Show Me The Money

How The Dollars Flow

How the Champ Plan Works Financially

This visual outlines exactly how the money would move within your existing payroll setup.

The crucial thing to remember is that this is a reshuffling of existing tax code, not an out-of-pocket expense for your company.

Let’s break it down into two parts:

1. Your Net Monthly Savings

The Tax Shift: The plan utilizes a $1,200 pre-tax employee Section 125 deduction.
The FICA Match: Because FICA is a matching tax, reducing your employees' taxable income by $1,200 instantly reduces your employer payroll tax burden by 7.65%.
The Gross Savings: This creates $91.80 in raw FICA savings per employee, every single month.
The Net Profit: After accounting the $44.00 administration fee, your business walks away with a true Net Savings of $47.80 per employee, per month.

2. The Invoice & Funding Mechanics

To keep the plan active, Champion Health sends a monthly invoice of $234 per enrolled employee. Here is exactly where those dollars come from:

$44.00 PEPM: This is the corporate administration fee covered by your FICA tax savings.
$190.00 PEPM: This comes directly from the withholding of the individual employee's pre-tax contribution—money you would have already paid out to them as normal, taxable compensation anyway.

The Bottom Line: You are leveraging standard IRS tax codes to lower your tax liability, put money back in your business, and provide robust healthcare benefits to your team at zero net cost to your corporate budget.

Employee Paycheck Before & After

How Employees Take Home More Pay

This side-by-side comparison shows an example on how the plan impacts your team's paycheck.

Let's look at a typical employee earning $4,000/month:

1. Standard Paycheck

Currently, the employee has standard taxes taken out, including Federal, FICA, and State withholdings.
They have their normal deductions for things like a 401(k) and standard health insurance.
Their final take-home net pay comes out to $3,064.34.

2. Paycheck With The Champ Plan

The employee's baseline gross pay stays exactly at $4,000, but notice how their tax withholdings decrease. Here is the tax mechanism that makes it happen:

Champ Plan Deduction ($1,200 Pre-Tax): We place a $1,200 Section 125 pre-tax deduction on the paycheck. This lowers their taxable income, instantly lowering their tax withholdings.
The Plan Reimbursement (+$1,130 Champion Benefit): Because the employee participates in required proactive health events they receive a tax-free claim payment of $1,130 paid back into their paycheck.
The Plan Premium ($120 Post-Tax): A small post-tax premium completes the funding for their enhanced benefits.

The Result

In this example, the employee saves $306 in total taxes. After subtracting the $190 net cost of the plan, the employee gains an increase in pay of $116/month. That is nearly $1,400/year in extra take-home pay, alongside $0 copay primary care, urgent care, and prescriptions.

Employer Savings For 100 Enrolled Employees

How Employer Savings Add Up

Now let’s look at how these individual savings directly impact your company’s annual bottom line.

1. The Individual Breakdown

As we established, the mechanics of this plan repeat across every single participating member of your workforce:

Every W-2 employee enrolled, their $1,200 pre-tax deduction lowers your taxable payroll baseline.
That creates an immediate $91.80 reduction in your monthly matching FICA tax liability.
After subtracting Champion Health's $44.00 admin fee, your business totals a net profit of $47.80 per employee, every single month.

2. The Annual Scale

When you multiply that across your calendar year, that comes out to $573.60 in pure net tax savings per employee, per year.

Look at what happens when we scale that number to a company with 100 employees enrolled in The Champ Plan:

If you have 100 qualifying employees enroll in the program, that creates an annual tax savings of $57,360.00 flowing right back into your business.
If you have 200 employees, you're looking at over $114,000 in found revenue.

The Strategic Win: This isn’t a temporary tax credit or a shifting loophole. This is a consistent, predictable annual savings that essentially funds a healthcare benefit for your employees while strengthening your company cash flow.