Business Tax Strategy · ProfitGuard Plus · For Partners
ProfitGuard Plus for CPAs
and Payroll Providers
Your client heard about ProfitGuard Plus and asked you whether it is real. This page is written for that moment. It gives you the structure, the code sections, how it shows up on payroll, and the questions we expect you to ask. We work alongside you, not around you. You stay the authority on your client's return.
Quick answer
- ProfitGuard Plus is a payroll-tax and benefits structure for W-2 employers, built on IRC Sections 125, 106(a), 105 (with Treasury Reg 1.105-11), and 213(d).
- It lowers the employer's FICA bill by about $500 to $600 per employee per year without changing gross compensation.
- Each participating employee takes home about $40 to $80 more per paycheck and receives preventive care benefits worth about $1,400 a year.
- The reimbursement runs through a Self-Insured Medical Reimbursement Plan, kept separate from the Section 125 cafeteria plan. That separation is what distinguishes it from the programs the IRS shut down.
- It reimburses Section 213(d) medical care only. No step counts, gym memberships, or gift cards.
- Plan documents are written and reviewed by CPAs and ERISA attorneys before any plan goes live, and your client's CPA is expected to review them too.
- Ten Point Financial Group coordinates with the payroll provider and handles the plan documents. The employer's lift is light.
- We work alongside the CPA and payroll provider, not around them. You stay the authority on your client's return.
- To refer a client or ask a question, email anthony@tenpointfg.com or book a call.
What you need to know first
What it is
A payroll-tax and benefits structure for W-2 employers. It lowers the employer's FICA bill by about $500 to $600 per employee per year, gives each participating employee about $40 to $80 more per paycheck, and adds preventive care benefits worth about $1,400 a year per employee. Gross compensation does not change.
What it is built on
IRC Section 125 (cafeteria plan election), Section 106(a) (employer health contributions pre-tax), Section 105 with Treasury Reg 1.105-11 (the Self-Insured Medical Reimbursement Plan), and Section 213(d) (the definition of medical care).
Where the line is
Reimbursement runs through the SIMRP, never back through the cafeteria plan. The care reimbursed is 213(d) care only. Those two facts are the difference between this structure and the ones IRS Chief Counsel memos targeted.
Who reviewed it
Plan documents are written and reviewed by CPAs and ERISA attorneys before any plan goes live. We expect the client's own CPA to review them as well.
How it shows up on payroll
Here is the path, in order. Nothing on this list changes an employee's gross pay.
- The employee makes a pre-tax election under Section 125. That election lowers the wages subject to FICA, which is where the employer's saving comes from.
- The employer's health dollars flow to employees pre-tax under Section 106(a), stacked on the 125 election.
- Reimbursement for 213(d) medical care runs through the SIMRP under Section 105 and Reg 1.105-11, tax-free and separate from the cafeteria plan.
- Ten Point Financial Group coordinates the setup with the payroll provider and handles the plan documents. The saving then repeats every payroll going forward.
If you run payroll for the client, we will work directly with you on the setup. If a third party runs it, we coordinate with them and keep you copied.
The questions you will ask
We hear these from nearly every CPA. Short answers here; the longer versions are one click away.
Is this double-dipping?
No. Double-dipping is running the reimbursement back through the same Section 125 plan that already produced the pre-tax break. ProfitGuard Plus keeps the reimbursement in a separate SIMRP under Section 105 and Reg 1.105-11. Full explanation: the double-dipping line.
What gets reimbursed?
Section 213(d) medical care only: telehealth, mental health support, care navigation, and chronic condition support. Not step counts, gym memberships, or gift cards.
What about the ACA penalty?
Each participating employee must have major medical coverage somewhere. That Integrated 105 design keeps the plan clear of the Section 4980D penalty.
Who qualifies on the client's payroll?
Full-time W-2 employees earning about $17,000 or more a year, with major medical somewhere. 1099 contractors do not participate.
Does this replace the client's current benefits?
No. It stacks on top of existing medical, dental, vision, and retirement benefits.
Can I see the documents before anything goes live?
Yes. That is how it should work, and we will get them to you.
How we work with you
Ten Point Financial Group educates first. We show the owner how the structure works, model the numbers, and loop you in on the specifics. You stay the authority on your client's tax position. We do not give tax guidance and we do not step between you and your client. When the owner decides to move forward, we coordinate with the payroll provider and handle the plan documents, so the lift on your side and theirs stays light.
How to refer a client
Email Anthony
Send the client's name, W-2 headcount, and payroll provider. We take it from there and keep you copied.
anthony@tenpointfg.comRead more
The statute text is linked on the tax code behind ProfitGuard Plus. The compliance frame is on the double-dipping line. The owner-facing walkthrough and the free 4-PDF bundle are on the ProfitGuard Plus page, and everything else is in the ProfitGuard Plus Education Center.
Frequently asked questions
What is ProfitGuard Plus, for a CPA?
A payroll-tax and benefits structure for W-2 employers built on IRC Sections 125, 106(a), 105 with Treasury Reg 1.105-11, and 213(d). The employee makes a pre-tax Section 125 election, employer health dollars flow pre-tax under 106(a), and reimbursement for 213(d) medical care runs through a Self-Insured Medical Reimbursement Plan kept separate from the cafeteria plan. Gross compensation does not change.
How is this different from the programs the IRS shut down?
Two ways. Those programs ran reimbursement back through the Section 125 cafeteria plan, which the IRS treats as double-dipping, or they reimbursed activities like step counts and gift cards rather than 213(d) medical care. ProfitGuard Plus keeps reimbursement in the SIMRP and reimburses 213(d) care only.
How does it show up on payroll?
The employee's pre-tax Section 125 election reduces the wages subject to FICA, which is where the employer's saving of about $500 to $600 per employee per year comes from. Gross pay is unchanged. Ten Point Financial Group coordinates the setup with the payroll provider so the client is not doing it alone.
Which employees participate?
Full-time W-2 employees earning about $17,000 or more a year who have major medical coverage somewhere: their own plan, a spouse's or parent's plan, Medicare, or a marketplace plan. That Integrated 105 design keeps the plan clear of the ACA Section 4980D penalty.
Will I get to review the plan documents?
Yes, and we want you to. The documents are written and reviewed by CPAs and ERISA attorneys before any plan goes live. Your review on behalf of your client is part of how this should work.
How do I refer a client?
Email anthony@tenpointfg.com with the client's name, W-2 headcount, and payroll provider, or book a call. We educate the owner, model the numbers, and keep you in the loop from the first conversation.
This is education, not tax or legal advice. Actual savings vary by payroll structure, participation, and state and local tax. Talk to your CPA about your specifics before you decide. ProfitGuard Plus is a marketing name for a structure built on IRS code sections 125, 106(a), 105, and 213(d).
See your ProfitGuard Plus number
Enter your W-2 headcount and see the combined value first. Then we'll run your exact numbers. You can also read the full walkthrough on the ProfitGuard Plus page or call +1 (586) 899-1003.
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