24/7 Telemedicine
Dedicated physicians · At-home labs · Primary care · Integrated urgent care · Chronic condition management · Specialist coordination
Nonprofits
Nonprofit Pretax Benefits &
FICA Tax Savings
Nonprofit
Pretax Benefits &
FICA Tax Savings
Reduce employer FICA payroll taxes across your mission-funded workforce with a Section 125 election that funds a written §105 plan covering real medical care. Redirect savings back into programs starting mid-year, off your open enrollment cycle, while keeping existing health benefits fully intact.
3 Budget Pressures Squeezing Nonprofit Margins 3 Pressures Squeezing Nonprofit Margins
Built for multi-site nonprofits, youth-serving orgs, workforce development, and faith-based employers managing lean payrolls and high staff turnover. Built for multi-site nonprofits, youth-serving orgs, workforce development, and faith-based employers managing lean payrolls and high staff turnover.
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Employer 7.65% FICA on taxable wages; every dollar of payroll tax is a dollar that never reaches programs, participants, or the community you serve.
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Renewal premium jumps and rising benefits spend compete with restricted grants and program budgets that cannot absorb new overhead.
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Staff need better benefits and take-home value, without a new expense line or money diverted from programs.
Verified in nonprofits
Illustrative: at about $50 per participant per month, 75 participating staff saves about $45,000 a year in employer FICA, after fees, back to programs.
Free Nonprofit Benchmarks
See what's normal for nonprofits your size: reserves, deficits, payroll, benefits and executive pay, from 370,000+ public IRS Form 990s.
Care That's Included for Your Team
$0-copay care for everyday needs, plus voluntary coverage staff can add.
Mental Health Suite
Behavioral Health · Psychiatry · Therapy On-Demand Counseling · Medication management · Primary care coordination
Rx Coverage
$0 copay on a broad list of generics · Covers 95% of top 200 maintenance medications · 70,000+ pharmacy locations
Health Advocacy
Bill Negotiation · Care Navigation · Physician Search · Coverage Review · Rx Assistance
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Dedicated physicians · At-home labs · Primary care · Integrated urgent care · Chronic condition management · Specialist coordination
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Behavioral Health · Psychiatry · Therapy On-Demand Counseling · Medication management · Primary care coordination
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$0 copay on a broad list of generics · Covers 95% of top 200 maintenance medications · 70,000+ pharmacy locations
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Bill Negotiation · Care Navigation · Physician Search · Coverage Review · Rx Assistance
Accident Expense
Covers ER visits, follow-ups, physical therapy, and more after an accident.
Critical Illness
A lump-sum paid to you if you are diagnosed with cancer, a heart attack, stroke, or other covered illness.
Short-Term Disability
Replaces lost income when you cannot work due to injury or illness.
Hospital Indemnity
Cash paid directly to you when you are admitted to a hospital.
Term Life Insurance
Coverage through age 70 for your beneficiaries. Funded through the plan's savings.
Whole Life Insurance
Permanent coverage that builds cash value and never expires.
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Covers ER visits, follow-ups, physical therapy, and more after an accident.
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A lump-sum paid to you if you are diagnosed with cancer, a heart attack, stroke, or other covered illness.
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Replaces lost income when you cannot work due to injury or illness.
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Cash paid directly to you when you are admitted to a hospital.
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Coverage through age 70 for your beneficiaries.
Funded through the plan's savings.
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Permanent coverage that builds cash value and never expires.
Compliance, Tax Mechanics & Execution
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To prevent tax ambiguity and satisfy ERISA governance requirements, Thrive Benefits Group supports the arrangement through three distinct plan documents.
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Cuts taxable wages subject to 7.65% employer FICA tax. Works with Paylocity, ADP, Paychex, Gusto, Paycor, QuickBooks, and most other major payroll systems. Codes for three line items (pretax deduction, reimbursement, admin fee) are set up at kickoff.
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Works alongside your current carrier and broker. No Broker-of-Record (BOR) change, so current plans and commissions stay intact.
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Delivers about $50 per participant per month in net employer FICA savings, after fees. Every participant's paycheck is modeled before enrollment and verified in a mock payroll, so net pay is designed to hold steady or rise.
Nonprofit reading
Further reading from the Nonprofits category on the Thrive blog.
Nonprofit FAQs
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501(c)(3) status doesn't exempt you from FICA, so employer FICA (7.65%) is where the savings come from. 501(c)(3) organizations already don't pay FUTA, so there are no FUTA savings to count.
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It depends on your structure. Some nonprofits can implement without board approval, some take it through a finance committee, and some go to the full board. We provide the three written plan documents and an organization-level savings model for whatever review you need.
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Yes. Employer FICA savings lower your payroll tax expense, so they become operating dollars you decide how to use: programs, staff support, or reserves. City of Refuge put its $82,248 in 2025 savings back into the mission.
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Yes. The plan doesn't have to wait for your medical plan's open enrollment. A new group typically goes live about 4 weeks from first call, with its own initial enrollment.
Get an organization-level savings model before renewal
Headcount, FT/PT mix, and current medical are enough to model employer FICA impact and program dollars recovered.