Understanding PCMP Deductions on Your Security Guard Paycheck
PCMP stands for Preventive Care Management Program, a tax-advantaged wellness benefit that many security guard companies and other employers are implementing. Here's how it works and why it appears on your paycheck.
How PCMP Works
The program involves a pre-tax deduction from your paycheck, but the same amount is reimbursed to you post-tax on the same paycheck. Essentially, money is deducted and then immediately returned to you, leaving your net pay unchanged. You receive the same amount of money you would have received without the program.
Why Employers Use PCMP
Security guard companies implement PCMP programs primarily to reduce their payroll tax burden while simultaneously providing employees with access to preventive health services. The structure is compliant with IRS regulations including Sections 105(b), 106(a), and 213(d), making it a legitimate tax strategy.
For employers, this arrangement reduces FICA (Federal Insurance Contributions Act) taxes. For employees, it provides access to qualifying preventive health services such as wellness checks, health screenings, and other preventive care benefits at no actual cost.
What It Means for You
The key point to understand is that PCMP deductions are revenue-neutral for your paycheck. Your employer automatically processes these deductions and reimbursements as part of their payroll system, which is why they appear on your pay stub without your needing to opt in. In exchange, you gain access to preventive health services that can help you maintain your health while working demanding security shifts.
If you have questions about the specific health benefits available through your employer's PCMP, contact your company's human resources or benefits department for details on how to access these services.