How payroll-tax savings are modeled to fund employee benefits at $0 net cost

Every business already pays payroll taxes on W-2 wages. Structuring part of an employee's compensation as a qualifying pre-tax benefit reduces the payroll tax base for both the employer and the employee — savings that exist whether or not a business uses them.

Kept's model routes those savings toward funding expanded benefits: $0-copay virtual care, prescriptions, mental health support, and accident coverage. Because the savings are what's modeled to pay for the coverage, the goal is little to no new spend for the business and no reduction in an employee's take-home pay for qualifying employees.

This is why the numbers are modeled to work out to $0 net cost on both sides for qualifying employers and employees — it isn't a discount or a subsidy, it's a different way of structuring compensation that was already available. Actual results depend on an employer-specific pro forma and are not guaranteed for every employee.

Savings can begin as early as the first payroll period after enrollment, with exact timing and amount depending on headcount, existing payroll structure, and your company's specific pro forma — up to $1,100 per W-2 employee per year as modeled.