CBIZ Review of Section 125 (August 2025) — What CBIZ Actually Concluded
CBIZ Advisors LLC — top-7 U.S. accounting firm — reviewed the Section 125 Preventive Care program in August 2025. Independent review confirms compliance with IRC §§ 125, 105, 106, ERISA, ACA, and COBRA when operated per its provisions.
CBIZ Advisors LLC — top-7 U.S. accounting firm — reviewed the Section 125 Preventive Care program in August 2025. Independent review confirms compliance with IRC §§ 125, 105, 106, ERISA, ACA, and COBRA when operated per its provisions.
This post unpacks the underlying authority, the practical implications for employers, and how the program structure stays inside the lines.
The Section 125 Preventive Care variant we work with carries a complete compliance documentation set: the May 2025 HitesmanLaw P.A. opinion letter (8 pages), the August 2025 CBIZ Advisors LLC independent review, the underlying IRS authority (IRC §§ 125, 105, 106, plus Rev. Rul. 69-154, Situation 3), and $500,000 of insurance-backed legal protection per enrolled employer. The documentation is share-able with your CPA, your benefits broker, your attorney — and routinely is, before any client signs.
How the math works (in 90 seconds)
For every enrolled W-2 employee earning $25,000+/year and covered under an ACA-compliant group health plan:
- Pre-tax salary reduction: $1,200/month · $14,400/year
- Employer FICA savings (7.65%): $1,101.60/year
- Net employer savings: $681.60/employee/year
- Employee net take-home raise: +$71.96/paycheck (~$863/year)
- Workers' Comp reduction: 30–60% real-world at next audit cycle (because WC base = taxable payroll, which Section 125 reduces by definition)
A 50-employee company nets $34,080/year in net FICA + industry-specific WC reduction. Run the calculator → for your specific number.
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Minimum 10 W-2 employees · $25K+ salary · ACA-compliant health coverage required
Verified by CBIZ & HitesmanLaw · Zero cost · Zero obligation
Verified compliant — May 2025 + August 2025
The Section 125 Preventive Care program described above was independently reviewed in 2025 by:
- HitesmanLaw P.A. (May 5, 2025) — 8-page formal legal opinion from Darcy L. Hitesman, J.D., a Super Lawyer-rated ERISA attorney with 35+ years in IRC § 125 practice, AV-rated since 1998, co-author of the national ERISA compliance manual. Concludes the program "satisfies applicable IRS requirements."
- CBIZ Advisors LLC (August 22, 2025) — top-7 U.S. accounting firm, 135,000+ clients. Independent review confirms compliance with IRC §§ 125, 105, 106, ERISA, ACA, and COBRA when operated per its provisions.
- $500,000 insurance-backed legal protection per enrolled employer + $10,000 per employee participant.
Read the full compliance authority page → · IRS.gov — Cafeteria Plans (Section 125) · 26 U.S. Code § 125
A real result from a real company
Affinity Hospice — multi-state hospice care · CFO Ariel Joudai (CPA) commissioned the CBIZ review before enrolling — saves $140,000+/year through this exact program structure. Read the full case study →
This isn't a projection — it's reported, on the public record, from operators whose own CPAs and attorneys reviewed the documentation before signing. Browse the full case study set →
Why the CBIZ review matters specifically to a CFO
CBIZ Advisors LLC is a top-7 U.S. accounting firm by revenue, with 135,000+ business clients across the nation, a public NYSE listing (NYSE: CBZ), and a regulatory profile that requires due diligence on any program structure it puts its name on. Its August 22, 2025 review of the Section 125 Preventive Care program is a peer-reviewed compliance assessment — not a sales-side endorsement, not a press release, not a marketing collateral piece.
The review confirms compliance with five specific frameworks: IRC § 125 (cafeteria plans), IRC § 105 (employer-provided health benefits), IRC § 106 (employer health plan contributions), ERISA fiduciary and reporting requirements, and ACA employer-mandate provisions under IRC § 4980H. It also explicitly addresses COBRA continuation rules under IRC § 4980B for employers reaching the 20-employee threshold. Each compliance area is analyzed against the documented plan structure, the operational mechanics of payroll integration, and the participatory wellness component delivery model.
For a CFO evaluating the program, the CBIZ review provides what the Hitesman opinion does not: independent accounting-firm validation that the program operates as the legal structure permits. CPAs reviewing the program internally typically pair the two documents — Hitesman addresses the legal compliance question, CBIZ addresses the accounting and operational compliance question. Affinity Hospice's CFO commissioned the CBIZ review specifically because his CPA training led him to want a peer-CPA review of the operational mechanics before he authorized enrollment. That review process is reproducible by any operator's outside firm — both documents are share-able PDFs available on the free 15-minute analysis call.
How to verify it yourself
Three primary sources, all public:
- IRS.gov — Cafeteria Plans — the law in the IRS's own words.
- 26 U.S. Code § 125 — the federal statute itself.
- The Hitesman opinion + CBIZ review — both share-able PDFs, available on your free 15-minute analysis call.
Ready to see your number?
Run the calculator above for an instant net-savings estimate, or book the free 15-minute analysis with the tax specialist for the exact number — no pitch, just math.
FAQ
FAQ
Verified by the Best in the Country
Skepticism is the right response. We don't ask you to take our word for it — we bring institutional proof that convinced CPAs, CFOs, attorneys, and insurance brokers to enroll their own companies.
Darcy L. Hitesman, J.D.
35+ years as an Employee Benefits attorney specializing in IRC Section 125, ERISA, HIPAA, and the ACA. Her May 5, 2025 opinion letter concludes: “In this firm's opinion, the Program described satisfies applicable IRS requirements.”
She specifically reviewed the IRS Chief Counsel Advice memoranda on "double-dip" arrangements — the exact schemes the IRS has flagged — and concluded this program is built differently and compliantly.
CBIZ Advisors LLC
CBIZ independently reviewed the program against IRC §§ 125, 105, and 106, plus ERISA, ACA, and COBRA requirements. Their August 22, 2025 letter concludes: “If operated per its provisions, the Program appears to satisfy the requirements of ERISA, the ACA, and COBRA as well.”
This review was commissioned by Affinity Hospice's CEO before enrolling his nationwide organization — and the CFO (himself a CPA) shared the letter publicly in his testimonial.
Direct From the U.S. Government
Section 125 has been in the Internal Revenue Code since 1978. Congress wrote it there specifically to encourage employers to fund preventive healthcare for American workers. This is not a loophole — it is the precise, intended use of a 47-year-old federal law, grounded in IRS Revenue Ruling 69-154, the specific published ruling supporting the benefit payment structure.
→ Verify on IRS.gov — Section 125 Cafeteria Plans ↗Content reviewed by Virginia Fish, CPA — tax and employer benefits specialist with 10+ years in financial reporting and payroll tax strategy.
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Free. No Pitch. Just Math.
Verified: CBIZ Advisors LLC (Aug 2025) · HitesmanLaw P.A. (May 2025)
$500K legal protection per enrolled employer · IRS Section 125 · Federal law since 1978