ProfitGuard Plus · For W-2 Employers
Lower your FICA. Raise your team's take-home.
A payroll-tax + benefits structure for W-2 employers — built on four pieces of long-standing IRS code. Save roughly $500–$600 per employee per year in FICA, give every employee $40–$80 more per paycheck, and add free preventative care benefits. Same gross compensation. ERISA-reviewed plan documents underneath.
- ~$500–$600 per employee per year in employer FICA savings — every payroll, forever
- Every participating employee takes home $40–$80 more per paycheck
- Free preventative care benefits: telehealth, mental health, care navigation, chronic condition support
- Same gross compensation — nothing changes on the cost side except your FICA bill
- Stacks on top of every benefit you already offer (medical, dental, vision, retirement)
- Light implementation lift — TPF coordinates with your payroll provider
How it works
Four pieces of IRS code. One payroll-tax engine.
§125
Cafeteria Plan
The pre-tax election. Employee elects a pre-tax deduction from gross wages.
§106(a)
Employer Health
Employer health contributions flow pre-tax. Stacks on top of §125.
§105 + 1.105-11
SIMRP
Self-Insured Medical Reimbursement Plan. Reimburses tax-free — NOT through §125. This is the structural choice that survives IRS scrutiny.
§213(d)
Qualified Care
Defines what counts as medical care for tax purposes. Telehealth, mental health, care navigation, chronic condition support.
The Skeptic's Frame
Most of these programs collapsed. Here's what's structurally different.
Half of the "tax-saving employee benefits" programs marketed in the last decade got shut down under IRS audit. The instinct to be skeptical is correct. The programs that failed shared two structural flaws:
- ·They ran reimbursement back through the §125 cafeteria plan — what the IRS calls double-dipping. The reimbursement becomes taxable.
- ·They reimbursed activities — step counts, gym memberships, gift cards — instead of real §213(d)-qualified medical care. IRS Chief Counsel memos targeted exactly this pattern.
ProfitGuard Plus is built the opposite way. Reimbursement flows through a Self-Insured Medical Reimbursement Plan under Treasury Reg 1.105-11 — never through the cafeteria plan. The care delivered is §213(d)-qualified. Plan documents are written and reviewed by CPAs and ERISA counsel before any plan goes live. That's the bright line.
Eligibility
Two gates. That's it.
One
W-2 employees, full-time, $17,000+/year
The structural floor. Lower-income workers don't hit the tax bracket where the math compounds.
Two
Major medical coverage somewhere
Your plan, spouse's plan, parent's plan, Medicare, marketplace — anywhere. This is the Integrated 105 design that avoids the ACA §4980D penalty.
Common questions
What owners ask us first
What is ProfitGuard Plus?
It's a payroll-tax and benefits structure for businesses with W-2 employees. It lowers the employer's FICA taxes and gives employees more take-home pay, using four sections of IRS code — 125, 106(a), 105, and 213(d). Gross pay doesn't change.
How much can a business save with ProfitGuard Plus?
Employers save about $500 to $600 per employee per year in FICA taxes, and it repeats every payroll. Each participating employee also takes home about $40 to $80 more per paycheck.
Is ProfitGuard Plus legal?
Yes. It's built on long-standing IRS code, not a loophole. The reimbursement flows through a Self-Insured Medical Reimbursement Plan under Treasury Reg 1.105-11 — never through the cafeteria plan — and the care reimbursed is real Section 213(d) medical care. CPAs and ERISA attorneys review the plan documents before any plan goes live.
Will my employees' pay go down?
No. Gross pay stays the same. Employees actually take home a bit more each paycheck, and they get free preventive care benefits like telehealth, mental health support, and care navigation on top.
Which businesses qualify for ProfitGuard Plus?
Two things need to be true. Your W-2 employees are full-time and earn about $17,000 a year or more, and each employee has major medical coverage somewhere — their own plan, a spouse's or parent's plan, Medicare, or the marketplace.
Isn't this the kind of program the IRS shuts down?
Some were, and being cautious is smart. The ones that failed ran reimbursements through the cafeteria plan (double-dipping) or paid for things like gym memberships and gift cards instead of real medical care. ProfitGuard Plus avoids both by design, which is what keeps it on the right side of the rules.
Educational content only. Not financial, tax, or legal advice. Consult your CPA or benefits attorney for guidance specific to your business. ProfitGuard Plus is a marketing name for a structure built on IRS code sections 125, 106(a), 105, and 213(d). Actual savings depend on payroll structure, participation, and state and local tax conditions.