What is the PMCP Program?
The Preventative Care Management Program lowers payroll taxes for employers that provide additional wellness benefits to their employees. The PCMP combines 2 existing programs:
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Section 125 Cafeteria Plan - This kind of plan is what enables employers to provide any type of pre-tax benefit to their employees, like insurance, HSA's, or health benefits as in the case of the PCMP. This is the part that provides the structure for the PCMP to make it compliant with the IRS rules on taxable income.
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SIMERP - (self insured medical expenses reimbursement plan) - This plan lets employees make use of section 125 by using pre-tax wages toward healthcare expenses specifically. This is the part of the PCMP that actually provides the benefits to employees.
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Creating the program makes sense for all parties: employers save money on payroll taxes, employees gain access to certain health benefits, and the government can simultaneously improve the health and productivity of its citizens.
Who Qualifies for PMCP?
To qualify for the preventative care management program, employers have a few requirements:​
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Employers must have at least full time 20 employees that receive a W2.
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Freelancers and other part time employees do not qualify.
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Employers must have both a section 125 cafeteria plan and a self insured medical expense reimbursement plan (SIMERP)
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Employers have to create a plan document for the PCMP
Benefits to Your Company
How does the PCMP benefit your company?
Tax Savings
Enrolling in the PCMP can reduce your payroll taxes by $650 per employee per year at no extra expense to either you or your employees
Employee Wellbeing
Offering additional wellness benefits can increase your ability to attract talent, plus boost employee satisfaction and retention
Benefits to Your Employees
What services can the preventative care management program provide for your employees?
Mental Health
Weight Loss & Diabetes Counseling
Marriage Counseling
Short Term Disability
Critical Illness Coverage
Telehealth Options
How Do You Enroll in the PMCP?
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Ensure you meet the program qualifications
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Find a provider to help you implement the PCMP. Contact Open Advisor to get the best provider for you.
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Inform your employees about the upcoming changes so they can choose which benefits they want
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Work with your provider to implement the program, ensuring your payroll taxes account for the change
Finding a PCMP Provider You Can Trust
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With any tax credit, it's important to find a provider that you can trust to handle competently and correctly.
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A good PCMP provider will handle the process for you seamlessly, so you get the benefits without the hassle.
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Because the PCMP is directly involved with your payroll taxes, it's crucial to have a provider that gets every detail right to prevent future issues with the IRS.
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Open Advisor works with a variety of trusted tax credit companies and will match you with the right partner for your business.