Business Tax Strategy · ProfitGuard Plus
Who qualifies for
ProfitGuard Plus, and who does not?
Two things decide it. Your employees are full-time W-2 workers earning about $17,000 a year or more, and each one has major medical coverage somewhere. Industry does not matter. Payroll does.
Quick answer
- Gate one: full-time W-2 employees earning about $17,000 or more a year.
- Gate two: each participating employee has major medical coverage somewhere. Their own plan, a spouse's or parent's plan, Medicare, or the marketplace all count.
- Industry does not matter. Small businesses, practices, contractors, restaurants, nonprofits, school districts, and municipalities all fit.
- It works best at 10 or more full-time employees, because the saving repeats per employee.
- It is not for businesses with only 1099 contractors or owners with no W-2 staff.
- The fastest check is your headcount plus one question: does each of them have major medical?
The two gates
First, the employee is full-time and on W-2 payroll earning about $17,000 a year or more. Second, the employee has major medical coverage somewhere. It does not have to be your plan. A spouse's plan, a parent's plan, Medicare, or a marketplace plan all satisfy it. Clear both gates and the employee can participate.
Who usually fits
Any employer that runs W-2 payroll. We see small businesses, medical and dental practices, contractors, restaurants, nonprofits, school districts, and municipalities. The math is the same for all of them because it is per employee. Ten or more full-time employees is where it works best.
Who does not
A business with only 1099 contractors, because there is no W-2 payroll to run it through. An owner with no W-2 staff. Part-time workers under the pay floor. The longer version, with the reasons behind the $17,000 floor, is on the who needs ProfitGuard Plus page. Enter your headcount on the homepage estimator to see your number.
Frequently asked questions
Do I need a minimum number of employees?
It works best at 10 or more full-time W-2 employees, because the saving is per employee and repeats every payroll. Smaller teams can still ask. The math just gets smaller.
Does my industry matter?
No. Payroll matters. If you run W-2 payroll with full-time employees who clear the two gates, the structure works the same way in any industry.
What if an employee has no health coverage at all?
That employee cannot participate until they have major medical coverage somewhere. It does not have to be your plan. A spouse's plan, a parent's plan, Medicare, or the marketplace all count.
Do part-time employees qualify?
The plan is built for full-time W-2 employees earning about $17,000 or more a year. Part-time workers under that floor do not clear the first gate.
I only use 1099 contractors. Does it work for me?
No. ProfitGuard Plus runs through W-2 payroll. Without W-2 employees there is nothing to run it through.
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.
Keep Reading