Benefic allows you to implement and manage the most flexible health benefit available to small employers: the ICHRA. Reimburse yourself and your employees tax-free for health insurance and out-of-pocket medical expenses, with full plan-document compliance and flexibility for employees, without setting up a group plan.
Beta: calendar-year C-corporations with 12 or fewer employees · same benefit for all employees
A quick example
C-corp owner reimbursing themselves with $18,000 annual health expenses
IllustrativePaid personally, after-tax
$18,000
Out of already-taxed income
Reimbursed through ICHRA
$11,520
Pre-tax via the business
Approximate annual savings
$6,480
Varies by your tax situation
Figures are illustrative based on a 36% combined marginal rate. Not tax advice; consult your CPA.
What you get
Deductible to the business
Reimbursements are a deductible business expense. Tax-free to the employee when minimum essential coverage requirements are met.
Filings handled
Form 1095-B and Form 720 (PCORI) prepared and filed on your behalf. Audit-ready records retained for seven years.
Encrypted by default
Receipts and medical documents are end-to-end encrypted. We cannot read them. Your records, your keys.
How it works
Set up your plan
Tell us your company structure and the annual allowance per employee. Benefic generates your plan document, summary plan description, and required employee notices.
Invite your team
Employees confirm they have qualifying individual health coverage. They can submit insurance premiums and out-of-pocket medical receipts through their dashboard.
Review and approve
You review each submission and approve or deny. You pay approved expenses through via your existing payroll, ACH, or check; Benefic never touches the money.
Filings happen automatically
At year-end, Benefic prepares and files Form 1095-B with the IRS and the annual PCORI fee on Form 720. All records retained for audit.
What CPAs say
"For a small business C-corp client that doesn't qualify for or doesn't want a group plan, an ICHRA is one of the cleanest and most beneficial tax strategies available. The compliance overhead has always been the hard part; Benefic handles that piece without inserting itself between the client and their books."
Jane Doe, CPA
PLACEHOLDER — NOT AN ACTUAL CPA ENDORSEMENT — [Firm name]
"With a properly designed ICHRA, a small business owner can deduct nearly unlimited health expenses (think: acupuncture, cash-pay therapy, anything that could otherwise be paid from an FSA) in the most tax-favorable way possible. Benefic makes this easy and compliant."
Jack Smith, CPA
PLACEHOLDER — NOT AN ACTUAL CPA ENDORSEMENT — [Firm name]
Who this is for in beta
While we get the encryption, plan documents, and IRS filings exactly right, we're limiting beta access to companies that fit the profile below. We'll open up to more company types as we go.
C-corporation
S-corp, sole prop, LLC, and partnership support is coming later.
12 or fewer employees
Counting yourself if you're on payroll. From solo C-corp to small team.
Same benefit for everyone
Every eligible employee gets the same annual allowance. Employees can be excluded by class (part-time vs full-time, under 21, etc), but no tiering by role or family size in beta.
Calendar year corporation
Your corporation's fiscal year matches the calendar year.
Not sure if you qualify? Request access and we'll be in touch.
Beta pricing
$15 / employee / month
Plus $49/month platform fee. Compliance filings included. No setup, no contract.
Example: 6 employees = $139/month total.
FAQ
What is an ICHRA, exactly?
An Individual Coverage Health Reimbursement Arrangement (ICHRA) is an IRS-blessed way for an employer to reimburse employees, tax-free, for health insurance premiums and out-of-pocket medical expenses. Employees buy their own individual coverage on the open market. You give them an annual allowance and reimburse qualifying expenses up to that amount. Created by federal regulation in 2019, available to employers of any size, with no statutory cap on how much you can contribute.
Do my employees need to already have insurance?
Yes. Employees must a. independently acquire health coverage directly from a health insurer, or b. be on Medicare, before reimbursements can be tax-free. The cost of that health coverage is a tax-free reimbursement. So, employees need to obtain coverage through any insurer of their choice, and will subsequently be reimbursed tax-free by you, the employer, through the ICHRA plan. Being newly offered an ICHRA triggers a Special Enrollment Period, so employees who don't have coverage yet get a 60-day window to enroll. Benefic walks employees through coverage attestation as part of onboarding.
Do you handle the money?
No. Benefic is software only; funds never pass through our platform. When you approve a reimbursement, you pay it the same way you pay anything else: through your existing payroll, ACH, check, or card. We track approvals, balances, and records. You control the bank account. This is also why we don't need to be licensed as a third-party administrator.
What happens if the IRS audits us?
You're well-positioned. Benefic stores every approved receipt, premium statement, and plan document (encrypted, with you holding the keys) for seven years (the ordinary IRS audit window is three years from file date). At year-end, we prepare and file your Form 1095-B (ACA reporting) and Form 720 (PCORI fee). If you ever need to substantiate a reimbursement, the full audit trail is one click away: submission date, what was uploaded, who approved it, when it was paid.
Am I subject to HIPAA requirements if I have possession of medical receipts and billing records of my employees?
Not in the traditional sense. You need to issue a HIPAA privacy notice, and a "firewall" rule stating that health information won't be used for employment decisions. Benefic generates both as part of your plan setup. You'll also want to handle medical receipts with reasonable care, which the platform does for you by encrypting everything end-to-end.
For my CPA or tax preparer: how do the reimbursements (cash outflows) get classified on my tax return? Are they included on employee W-2s?
Your tax preparer classifies the reimbursements (the cash outflows) as "Employee benefit programs" (line 24 on a Form 1120). For C-corporations, ICHRA reimbursements entirely bypass the W-2; no adjustments are needed with payroll tax reporting.
We're currently onboarding a small group of C-corp owners. Request beta access and we'll be in touch.
Request beta access