What is the Ignite Health FICA reduction program?
Ignite Health is an IRS-compliant Section 125 program that restructures employee compensation to legally reduce FICA payroll taxes for both the employer and employee. On average, businesses save $40,000–$80,000+ per year with 10+ eligible employees — at no cost to employees and with no reduction in take-home pay.
Is this legal? How does it work?
Yes — this is a legitimate tax strategy authorized under IRS Section 125 (the "Cafeteria Plan" rules), the same section that governs health insurance and FSA deductions. The program redirects a portion of employee compensation through pre-tax health benefit accounts, reducing the income subject to FICA (Social Security and Medicare taxes).
Who qualifies for the Ignite Health program?
Any W-2 employer with 10 or more eligible employees can potentially qualify. Industries that have seen strong results include construction, manufacturing, healthcare, hospitality, retail, and professional services. The program works best for companies with consistent payroll and stable employee bases.
Will my employees see any reduction in take-home pay?
No — employees see the same or slightly higher take-home pay. The restructuring is designed to be cost-neutral to employees. In many cases, employees actually benefit from reduced payroll tax withholding.
How much can my business save?
Savings vary by company size and average salary. A business with 25 employees averaging $50,000/year might save $30,000–$45,000 annually. A business with 100 employees could save $150,000+. We offer a free FICA savings estimate — no commitment required.
Are there any compliance risks?
The program is fully compliant when implemented correctly. Ignite Health manages all documentation, plan documents, and ongoing compliance reporting. The program has successfully passed IRS scrutiny and is backed by legal opinions.
How long does implementation take?
Implementation typically takes 30–60 days from the signed agreement. The program can start on any payroll date — you don't have to wait for the calendar year. Our team handles all the heavy lifting.
What documentation do I need to get started?
To run your free savings estimate, we need: (1) number of W-2 employees, (2) total annual payroll, (3) current benefit offerings (if any). For full implementation, we'll need your payroll records and employee census. We'll guide you through the entire process.
Does this affect my existing health benefits?
In most cases, no — the Ignite Health program works alongside existing benefits. In some cases, we can integrate it with an existing Section 125 plan or group health offering to maximize total savings.