Business Tax Strategy · ProfitGuard Plus
Who Needs ProfitGuard Plus?
W-2 Employers Who Qualify
Owners ask us this first: "Is this for a business like mine?" The honest answer is that your industry matters less than your payroll. If you run W-2 payroll and your team clears two simple gates, the plan fits. Here is how to tell with a quick head count, and who it is not for.
Quick answer
- ProfitGuard Plus is for employers who run W-2 payroll.
- Two gates decide the fit. Employees must be full-time W-2 workers earning about $17,000 or more a year.
- Each employee also needs major medical coverage somewhere: their own plan, a spouse's or parent's plan, Medicare, or a marketplace plan.
- If your team clears both gates, the plan fits. The type of business matters less than the payroll.
- Small businesses, practices, contractors, restaurants, nonprofits, school districts, and municipalities all run W-2 payroll, so all of them can be a fit.
- It is not for businesses that pay only 1099 contractors, or owners with no W-2 staff.
- It stacks on top of the medical, dental, vision, and retirement benefits you already offer. You replace nothing.
- The fastest way to tell is to count your full-time W-2 employees and ask whether each one has major medical somewhere.
The two gates
Every question about fit comes back to these two. If your team clears both, we can run your numbers.
Gate 1: Full-time W-2 pay
Employees must be full-time W-2 workers earning about $17,000 or more a year. Lower-income workers do not hit the tax bracket where the math compounds, so this is the structural floor.
Gate 2: Major medical somewhere
Each employee needs major medical coverage somewhere. Their own plan, a spouse's or parent's plan, Medicare, or a marketplace plan all count. This is the Integrated 105 design that keeps the plan clear of the ACA Section 4980D penalty.
Employer types that usually fit
These are the businesses and organizations we hear from most. What they share is W-2 payroll and a team that clears the two gates. Nothing here is a promise about your specific payroll. It is a starting point for the conversation.
Small and mid-sized businesses
Any owner who runs W-2 payroll and treats the employer side of FICA as a fixed cost. It does not have to be.
Medical, dental, and other practices
Full-time W-2 staff who already carry medical coverage often clear both gates. The practice keeps every benefit it offers today.
Contractors and trades
Crews on W-2 payroll qualify the same way any other team does. Crews paid on 1099 do not, because there is no employer FICA to lower.
Restaurants and hospitality
The fit depends on the two gates. Full-time W-2 staff earning about $17,000 or more with major medical somewhere participate. Part-time or lower-earning staff usually do not.
Nonprofits
Nonprofits run W-2 payroll and pay employer FICA like any other employer, so the same two gates apply.
School districts and municipalities
Public employers run W-2 payroll too. Some public payrolls are set up differently, so we check how FICA applies to your staff before we run any numbers.
Who it is not for
1099-only businesses
ProfitGuard Plus works through W-2 payroll and employer FICA. With contractors only, there is nothing for it to lower.
Owners with no W-2 staff
A solo owner with no employees has no team payroll to run the structure on.
Teams below the pay floor
Employees earning under about $17,000 a year, or working part-time, usually do not participate. A business made up mostly of that kind of payroll will see little from the plan.
Employees with no major medical anywhere
Each participant needs coverage somewhere. Without it, that employee sits out until they have it.
How to tell in three questions
- How many people are on your W-2 payroll full-time?
- Do those people earn about $17,000 a year or more?
- Does each of them have major medical coverage somewhere, even if it is not through you?
Three yeses means the plan fits, and the number of yeses on question one is the number we plug into the savings math. Two yeses means part of your team participates. If you are not sure on any of them, that is a fine reason to book a call.
What happens once it fits
The lift on your side is light. We coordinate with your payroll provider and handle the plan documents. Gross compensation does not change for anyone. The only line that moves is your FICA bill, and it moves every payroll going forward. Want the full picture first? Read the tax code behind it and the double-dipping line, or go back to the ProfitGuard Plus Education Center.
Frequently asked questions
Who qualifies for ProfitGuard Plus?
Employers with full-time W-2 employees who earn about $17,000 or more a year, where each employee has major medical coverage somewhere. That coverage can be their own plan, a spouse's or parent's plan, Medicare, or a marketplace plan. Those are the two gates.
Does my industry matter?
Not much. The structure works on W-2 payroll, so a dental practice, a restaurant, a contractor, a nonprofit, and a school district all start from the same place. What matters is the two gates: full-time W-2 pay of about $17,000 or more, and major medical somewhere.
I only use 1099 contractors. Does it work for me?
No. ProfitGuard Plus works through W-2 payroll and the employer's FICA bill. There is no employer FICA on a 1099 contractor, so there is nothing for the plan to lower.
Why is there a $17,000 floor?
Lower-income workers do not reach the tax bracket where the math compounds. Below about $17,000 a year, the structure does not do its job, so those employees would not participate.
What if some of my employees have no health coverage at all?
Each participating employee needs major medical coverage somewhere. That is the Integrated 105 design, and it is what keeps the plan clear of the ACA Section 4980D penalty. Employees without coverage would not participate until they have it.
Do I have to change the benefits I already offer?
No. ProfitGuard Plus stacks on top of your existing medical, dental, vision, and retirement benefits. Nothing you offer today goes away, and nobody's gross pay changes.
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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