What’s the Catch?
The most common questions employers ask before implementing — answered plainly. If you don’t see your question, a Prospera Benefits advisor will answer it directly.
For many employees, yes. The program is structured through pre-tax payroll deductions that reduce taxable income. The resulting reduction in federal income tax and FICA often equals or exceeds the cost of the benefit deduction — making the net impact approximately $0 or positive for the employee.
The exact outcome depends on each employee’s income, tax bracket, and benefit election. All projected outcomes are confirmed in your census-based proposal before implementation begins.
The program is designed to be cost-neutral for employers. The pre-tax payroll structure reduces employer FICA obligations (7.65% of the pre-tax election amount). For a company with 85 enrolled employees, that’s approximately $93,637/year in FICA savings — which fully offsets or exceeds any administrative costs.
Your exact employer savings are modeled from your actual census before you commit to anything.
There is no cost to receive a customized proposal. Submit your employee census and Prospera Benefits will build a full analysis showing projected employee income increases, employer payroll tax savings, and implementation requirements — at no charge and with no obligation to move forward.
Savings projections are built from your actual employee census data — including employee salaries, ages, and employment status. We apply the program structure to each employee individually, factoring in estimated tax brackets and expected participation rates. The result is a per-employee and company-wide projection that reflects your actual workforce, not industry averages.
No. This benefit works alongside your existing health insurance — it does not replace it. Employees keep their current coverage exactly as it is. The program adds an additional layer of healthcare access and restructures a portion of compensation to reduce taxable income. There are no changes to your current carrier, plan design, or coverage levels.
No. Your current carrier, broker relationship, and plan structure all remain unchanged. This benefit is designed specifically to integrate alongside whatever coverage you currently offer — whether that’s a fully insured plan, self-funded plan, level-funded plan, or any other structure.
The program is evaluated in the context of your existing benefits package, including any HSA or FSA arrangements. Prospera Benefits will review these as part of the proposal process to ensure the program integrates correctly with your current benefit structure and maintains compliance with applicable regulations.
The program is designed to be accessible to most W-2 employees, including both full-time and part-time workers. Eligibility criteria are evaluated during the census modeling process. Prospera Benefits will identify which employees in your workforce qualify and project outcomes only for eligible participants.
No — participation is completely voluntary. Employees who elect the benefit gain access to expanded healthcare services and often see an increase in take-home pay. Employees who decline keep their current compensation and coverage unchanged. There is no penalty for non-participation.
The program is designed to extend access to employees and their dependents in many cases. Dependent coverage details are outlined in the proposal and confirmed before implementation. Prospera Benefits will clarify which services extend to dependents based on your specific program structure.
The program is structured for W-2 employees. 1099 contractors operate under different tax structures and are generally not eligible for the pre-tax payroll component. Part-time W-2 employees may qualify depending on their compensation structure — this is evaluated during the census review.
From census submission to benefits launch, most implementations are completed within 4–8 weeks. The primary variable is payroll system coordination — most major platforms (ADP, Paychex, Gusto, etc.) integrate smoothly. Prospera Benefits provides a dedicated implementation manager who keeps the process on schedule.
To receive a proposal, you submit a standard employee census — typically a spreadsheet with employee names, dates of birth, annual salaries, and employment status (full-time/part-time). No sensitive personal data, medical records, or social security numbers are required at this stage. Prospera Benefits provides a census template to make this straightforward.
Most major payroll platforms are supported, including ADP, Paychex, Gusto, Paylocity, Rippling, Bamboo HR, QuickBooks Payroll, and others. Prospera Benefits will confirm compatibility during the proposal review. The pre-tax deduction structure is a standard payroll feature available in virtually all modern payroll systems.
This is addressed during the proposal review. In many cases, implementation does not require waiting for an open enrollment period, as the benefit operates independently of the existing insurance plan. Prospera Benefits will clarify the optimal timing for your specific situation based on your current benefits calendar and payroll schedule.
HR’s role is minimal. The primary responsibilities are: (1) submitting an employee census file, (2) coordinating payroll system access for integration, (3) distributing an internal announcement to employees, and (4) reviewing and approving the proposal. Prospera Benefits handles all employee communication, education sessions, enrollment management, and ongoing employee support.
Prospera Benefits handles all employee-facing communication and education — including group information sessions, written FAQs, and an employee support line. HR teams are not the first point of contact for employee questions about the benefit. Most employers report that employee questions are handled smoothly before and during enrollment, without significant HR involvement.
After launch, ongoing HR involvement is minimal. Prospera Benefits manages employee support, benefit access questions, and utilization reporting. HR receives regular summary reports and is notified of any changes affecting payroll. New hire enrollment is handled through a streamlined process that HR can complete quickly during onboarding.
The program is structured using established pre-tax benefit mechanisms under Section 125 of the Internal Revenue Code, which governs cafeteria plan benefits. Prospera Benefits recommends employers review the program structure with their own legal or tax counsel. All documentation required for compliance is provided as part of the implementation process.
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A Prospera Benefits advisor will answer any question directly — using your own workforce data where relevant. No scripts, no generic answers.