For WC Brokers · CPAs · Payroll Firms

Add $50,000+ in client savings to every renewal conversation.

Section 125 reduces both FICA and Workers' Comp — because WC is calculated on taxable payroll, and Section 125 reduces taxable payroll. Verified compliant in 2025 by HitesmanLaw and CBIZ Advisors LLC.

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    Bring it into a renewal — your client gets $681+/employee/yr in FICA + 30–60% WC reduction
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    You keep the relationship — the operator handles the implementation
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    Recurring per-employee referral compensation as long as the client stays enrolled
  • ✓
    $500K legal protection per enrolled employer + $10K per participant
→ WC Reduction Calculator·→ Workers' Comp Reduction Guide·→ For Insurance Brokers

Free Broker Toolkit (PDF)

Talking points · math reference · compliance citations

We use your contact only to send the toolkit and follow up on referral logistics. No spam, no list resale.

IRS Section 125 — Federal Law Since 1978
No New Insurance Required
No Changes to Current Benefits
ACA · ERISA · COBRA · HIPAA Compliant
Live in 30–60 Days
Three lanes

Why brokers, CPAs, and payroll firms add Section 125 to renewals

Workers' Comp brokers

Defend renewals from competitors

When your client's WC premium ticks up at renewal, Section 125 lets you offer a 30–60% reduction without changing carrier. The math compounds especially well for trucking (9%), drayage (10%), and construction (14%) classifications.

CPAs & accountants

A clean payroll-tax answer

$681.60 net employer savings per W-2 employee per year is a repeatable client-retention story. The plan administrator handles all documentation, nondiscrimination testing, and ongoing filings — you stay advisory.

Payroll firms

Sticky add-on per client

Section 125 adds a structural reason for clients to stay on your platform. Implementation integrates with whatever payroll system the client uses (ADP, Paychex, Gusto, Rippling, etc.) — you don't even need to switch them.

Tool · Free, No Login

WC Premium Reduction Calculator

Enter a client's current annual WC premium, employee count, and industry. The calculator returns a Year-1 reduction estimate, the FICA savings layer, and a 3-year cumulative number. Then enter the client's name and download a branded one-page PDF you can send over the same day.

Want the standalone version (no other content on the page)? /brokers/wc-calculator →

WC Premium Reduction Calculator

For brokers · estimate your client's savings · generate a one-pager

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Enter all three fields to see the estimate.

Legal & Accounting Proof

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.

HitesmanLaw P.A. · Minneapolis, MN

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.

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Named a Super Lawyer every year since 2000. AV-rated (highest possible rating) in Martindale-Hubbell since 1998.
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Co-author: ERISA Compliance for Health & Welfare Plans (Thomson Reuters/EBIA) — the national compliance standard manual since 1999.
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Member, Technical Advisory Group — Employers Council on Flexible Compensation. She helps set the industry standards for Section 125 plans nationally.

CBIZ Advisors LLC

Top-7 U.S. Accounting Firm · Cleveland, OH · 135,000+ Clients

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.

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Top-7 U.S. accounting firm. 10,000+ employees across 100+ offices. Serves 135,000+ clients nationally.
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Review covers: IRC §125 cafeteria plan, §105/106 wellness benefit rules, ERISA plan asset treatment, ACA integration, and COBRA obligations.
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$500,000 legal protection per enrolled employer · $10,000 per employee participant · Insurance-backed.
🏛️

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 ↗
The Referral Process

Four steps from your client conversation to the operator handling implementation

1

Mention it

In passing during a renewal or planning conversation. Keep it short — Section 125 reduces FICA + WC, verified by Hitesman + CBIZ.

2

Send the one-pager

Generate from the WC calculator above. The PDF carries the client's numbers + your firm name + David's contact.

3

Client books analysis

15 minutes with the tax specialist. Free, no obligation. Returns the exact savings figure for the client and their CPA.

4

You stay in the loop

You're notified of every milestone. The operator runs implementation. You earn recurring referral compensation while the client is enrolled.

Broker Questions

What brokers ask before introducing this

Recurring per-W-2-employee fees, paid monthly as long as the referred client is enrolled. Specifics are walked through individually on the broker intro call — they vary by referral volume and existing book size.
No. Your role ends with the warm introduction. The plan administrator team handles everything: plan documents, payroll integration, employee enrollment, nondiscrimination testing, ongoing compliance. You stay in the relationship as the introducer; the work is run by the operator.
No. Section 125 is a payroll-tax structure, not insurance. Your existing carrier appointments, E&O coverage, and book of business are unaffected. Many WC brokers introduce Section 125 specifically as a value-add that protects renewals from competition.
Three steps: (1) you mention Section 125 in passing during a renewal conversation, (2) you send the client one-pager generated from the calculator on this page, (3) the client books the free 15-minute analysis with the tax specialist, who runs their exact number. You stay in the loop throughout.
It would. The program has an 8-page formal legal opinion from HitesmanLaw P.A. (Super Lawyer-rated ERISA attorney) and an independent review by CBIZ Advisors LLC (top-7 U.S. accounting firm). $500K legal protection per enrolled employer + $10K per employee participant. Most attorneys reviewing the documentation conclude it's appropriate to share with clients.
15-Minute Broker Intro

Talk through your client portfolio.
Walk away with the toolkit and a referral structure.

Book the Broker Intro Call →Open the WC Calculator

Verified: CBIZ Advisors LLC (Aug 2025) · HitesmanLaw P.A. (May 2025)
$500K legal protection per enrolled employer · IRS Section 125 · Federal law since 1978