Attention Business Owners, C-Suite Executives, and HR Leaders
How The Dollars Flow
How the Champ Plan Works Financially
This visual shows how money moves when the Champ Plan is added to a company’s payroll.
Most of the activity happens through payroll accounting, not new out-of-pocket spending. The employer sends $234 per employee per month to Champion Health.
• $44 is the administration fee
• $190 comes from the employee’s pre-tax payroll contribution
Because that contribution is made pre-tax, the employer also reduces payroll taxes — creating a net savings of $47.80 per employee per month after fees.
In simple terms, the plan reshuffles how compensation is structured to unlock tax savings while funding valuable healthcare benefits.
Employee Paycheck Before & After
How Employees Take Home More Pay
Most employees who enroll in the Champ Plan see an increase in their net take-home pay while gaining access to additional health benefits.
Here's a comparison of two monthly paychecks:
Left Paycheck
We see a very typical paycheck:
- Gross pay of $4,000
- Pre-Tax Deductions: Roth, 401k and Health Insurance
- Employee net pay of $3,064.34
Right Paycheck
We see the same paycheck, now with The Champ Plan in effect.
Notice 3 new lines:
- The $1,200 Champ Plan (Pre-Tax) Deduction, this is through Section 125 - essentially reducing the employees taxable income for our qualifying benefit.
- Champ Plan Premium (Post Tax) of $120. This premium supports the benefits they receive.
- Champion Benefit (Post-Tax) of $1,130. This goes back into an employee's paycheck
Result
The employee takes home $116 more per month, or nearly $1,400 more per year, while gaining enhanced healthcare benefits.
This is not a raise and it does not change year-end taxes. It is a legal pre-tax structure designed to improve take-home pay.
Employers Savings For 100 Enrolled Employees
How Employer Savings Add Up
The same pre-tax structure that helps employees also reduces employer payroll taxes.
For each participating employee:
• $1,200 in pre-tax wages reduces employer FICA taxes
• Employer tax savings = $91.80 per employee per month
• Minus $44 administration cost
• Net employer savings = $47.80 per employee per month
That equals $573.60 per employee per year
If 100 employees enroll, that creates $57,360 in potential annual savings for the company — while employees receive stronger healthcare benefits and increased take-home pay.