You Are Already Optimizing the P&L
As a fractional or virtual CFO, you are responsible for finding efficiencies in your clients' financial operations. FICA is a line item that most employers accept as fixed. It does not have to be.
Through IRS-compliant Section 125/SIMRP structuring, employers can reduce their FICA liability by approximately $1,120 per enrolled W2 employee per year. For a 100-person company at about 80% participation (roughly 80 enrolled), that is an estimated $89,600 back on the P&L.
These figures are estimates. Actual savings depend on the employer's payroll, salaries, and participation rate, so they vary by client. A verified ProForma based on actual payroll data provides the real projection.
Why This Fits Your Practice
You Already Have the Financial Context
You know your clients' payroll structure, employee count, and benefits spend. You can identify the opportunity in minutes.
No Additional Work for You
You make the introduction to Brandon Attebury (Program Advisor). He handles the ProForma, plan structuring, payroll integration, and compliance.
Measurable Client Impact
This is a real, quantifiable P&L improvement you delivered. Your client sees the savings on their next payroll.
Ideal Client Profile
- 50+ W2 employees
- Stable, salaried workforce
- Existing major medical benefits
- Open to evaluating compliant tax strategies
Implementation
No disruption to existing benefits or payroll workflows beyond adding the Section 125 deduction codes.
Sources
- Legal Information Institute (Cornell Law), 26 U.S. Code § 125 — Cafeteria plans. The statutory basis for pre-tax cafeteria plan elections that reduce FICA wages.
- Legal Information Institute (Cornell Law), 26 U.S. Code § 105 — Amounts received under accident and health plans. Section 105(b) governs employer reimbursement of medical expenses.
- Legal Information Institute (Cornell Law), 26 U.S. Code § 3121 — Definitions (FICA). The FICA wage base affected by pre-tax salary reductions.
- IRS, About Publication 15-B, Employer’s Tax Guide to Fringe Benefits. Background on cafeteria plans and qualified fringe benefits.
This page is educational information, not tax or legal advice. Consult your own tax, legal, and benefits advisors before acting. Savings figures are estimates that vary by employer.