What is FICA? FICA is a U.S. federal payroll tax. It stands for the Federal Insurance Contributions Act and is deducted from each paycheck.
FICA TAX Savings Program
If you are an employer that has 10+ W2 employees on payroll, you can save $700 – $800 per employee on an annual basis… and to top it off, your employees will receive a 4% – 6% net increase in take-home pay + medical benefits.
All this is possible through Encompassing Health.
The affordable care act (a bill passed by Congress) states that if an employee engages in medical care benefits offered through a section 125 program, they are eligible to receive a $1,000 claim payment per month.
This claim payment ultimately lowers the FICA spending for both the employer and their employees.
Think about it like this… Encompassing Health is a coupon for FICA taxes!
Encompassing Health is the BEST section 125 program on the market.
- 100% compliant (based on IRS guidelines)
- Approved in all 50 states by the Department of Insurance.
- Highest net savings to employers ($700-$800 per employee annually)
- Highest net increase to employees (4%-6% increase in pay)
- Automated "Newsletter System" for employee engagement.
Encompassing Health is the only section 125 program that has been approved by the department of insurance in all 50 states, and that has an A+ rated carrier (insurance company) backing it.
Now the choice is yours. You can pay more or pay less when it comes to your FICA taxes.
Partial Suspension – Suspended by Government Order
Partial Suspension
- To meet the requirement of a partial suspension of operations for the purpose of claiming the ERC, a business must have experienced a nominal impact to their operations as a result of government order restrictions.
Governmental Orders
- It’s important to consider “orders from an appropriate governmental authority” as defined by the IRS.
- These orders include those issued by the federal government, state governments, or local governments that limit commerce, travel, or group meetings (for commercial, social, religious, or other purposes) due to COVID-19.
Defining Nominal Impact:
Two Considerations
- More than a Nominal Portion of business operations are suspended or modified by a governmental order.
- According to the IRS guidance suspended, restricted or modified portions of a business’s operations is considered to be more than nominal if:
1- Gross receipts from that portion account for 10% or more of a business’s total gross receipts, OR
2- Employee hours worked related to that portion account for 10% or more of the total hours worked. - Note: Source IRS Notice 21-20 – Ref: IRS
FAQ#11 & Ref: IRS FAQ#18
Note: An employer’s independent decision to suspend part or all of its operations does not meet these criteria.
The Statutory History of ERC
FICA is a U.S. federal payroll tax. It stands for the Federal Insurance Contributions Act and is deducted from each paycheck.
- PPP first draw made available
- Taxpayer must choose between
- PPP or ERC, cannot claim both
- ERC made available from
March – December 2020
——-♦3/27/2020———————–
- PPP second draw made available
- PPP recipients can now claim ERC
- ERC extended through June 30, 2021
——-♦11/27/2020————————
- ERC extended through December 2021
- Eligible for Q1-Q4 2021
——-♦3/11/2021————————-
- ERC Q4 2021 eliminated
- ERC ends 9/30/2021
——-♦11/15/2021—————
What is the FICA?
FICA is a U.S. federal payroll tax. It stands for the Federal Insurance Contributions Act and is deducted from each paycheck.
Potential Refund Amounts
Up to $26,000 per employee
[5k per employee in 2020
7k per employee per eligible
quarter in 2021]
Multiple Years Available
Available for 2020 & 2021
Government Funds Available
Funding based on eligible
wages
Ways to Qualify
Qualify with decline in
revenue or full/partial
shutdown of business
operations due to
governmental orders
About Us
FICA is a U.S. federal payroll tax. It stands for the Federal Insurance Contributions Act and is deducted from each paycheck.
750 Third Avenue, #122217, Chula Vista CA 91910
info@ng3.com elviahernandez@ng3.com
+1 619-204-8220
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