What is the Employee Wellness Plan?
EWP is a tax-advantaged employee benefits program rooted in IRS §1.105–11, designed to help businesses with 25+ employees reduce payroll taxes and offer supplemental health benefits — at no added cost to the employer or employee.
The Foundation
EWP stands for The Employee Wellness Plan — a program rooted in IRS §1.105–11. theemployeewellnessplan.com transforms this foundational concept into a modern, scalable solution for businesses with 25+ employees.
The program works by restructuring a portion of employee compensation as tax-exempt health benefits under Section 105(b) of the Internal Revenue Code. This reduces the taxable wage base for both employer and employee, lowering FICA obligations on both sides — creating a win-win that requires no out-of-pocket investment.
Businesses with 25 or more W-2 employees typically save an average of $40,000 or more per year. Larger organizations see proportionally greater savings. The program is fully documented, audit-ready, and administered by our team from day one.
$40K+
Average annual employer savings
25+
Minimum employees to qualify
IRS §105(b)
Governing tax code section
100%
Audit-ready documentation
Three Core Pillars
EWP is built on three foundational principles that work together to deliver measurable value.
Tax Efficiency
Built to help businesses save thousands annually through payroll tax reductions. By restructuring how employee benefits are administered, EWP reduces FICA obligations for both employer and employee — creating real, measurable savings.
Compliance Simplified
Designed to meet IRS guidelines, keeping your business audit-ready at all times. Every component of the EWP is grounded in established tax code, with documentation and administration handled end-to-end.
Modernized Benefits
Provides employees with access to supplemental health coverage and preventative care resources — all at no added cost. Employees receive real value; employers gain a competitive edge in recruitment and retention.
Why EWP Works
The program delivers tangible benefits across every dimension of your business.
Tax Savings with Compliance Built In
Every dollar saved on payroll taxes is a dollar reinvested in your business — with full IRS compliance baked in from day one. Businesses with 25+ employees typically see $40,000+ in annual savings.
A Healthier, More Productive Workforce
Employees with access to wellness resources take fewer sick days and bring more energy to work. Preventative care access reduces absenteeism and improves overall team performance.
Smarter Retention Strategies
Competitive benefits packages are a top driver of employee retention — EWP gives you an edge without the added cost. Attract and keep top talent by offering benefits that matter.
Turnkey Integration and Administration
EWP integrates with your existing payroll infrastructure. No new systems, no disruption — just better outcomes. Our team handles the setup, compliance documentation, and ongoing administration.
Ready to See How It Works?
Walk through the four-step process and see exactly how EWP delivers savings for your business.