How to Present Section 125 to a CFO
CFOs respond to verifiable math, third-party verification, and case-study evidence. Here's the slide deck: the Hitesman opinion + CBIZ review + Black Tiger / Avant-garde / Affinity Hospice case studies + the per-employee math.
CFOs respond to verifiable math, third-party verification, and case-study evidence. Here's the slide deck: the Hitesman opinion + CBIZ review + Black Tiger / Avant-garde / Affinity Hospice case studies + the per-employee math.
The math compounds across employer sizes and industries. The 15-minute free analysis call returns the exact figure for any specific operation; the calculator on this page returns an instant estimate without an email gate.
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.
See What You'd Save
No email required. See your number in 60 seconds.
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 →
The CFO presentation that actually closes
Most CFO presentations of new programs fail because they lead with the savings number. CFOs have heard the savings number from every salesperson who has ever walked through their door — the number isn't compelling on its own. What's compelling is the presence of independent named credentials and the specific compliance documentation that lets the CFO defend the program internally.
The five-slide structure that lands at CFO meetings:
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Slide 1 — Specifically named legal opinion. "HitesmanLaw P.A., Darcy L. Hitesman, J.D., May 5, 2025, 8-page opinion concluding the program satisfies applicable IRS requirements." Show the letterhead, show the signature, show the page count.
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Slide 2 — Specifically named accounting review. "CBIZ Advisors LLC, top-7 U.S. accounting firm, August 22, 2025, peer-reviewed compliance assessment confirming IRC §§ 125, 105, 106, ERISA, ACA, and COBRA conformance." This is what differentiates the program from arrangements the IRS has flagged.
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Slide 3 — The math, with the source for every number. $681.60/employee/year net FICA savings (gross 7.65% × $14,400 pre-tax salary reduction less a nominal annual fee program admin fee). Show the calculation. Show the IRS Publication 15 reference for the 7.65% rate.
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Slide 4 — The case study. Pick one matched to the CFO's industry (Affinity Hospice for healthcare CFO, Black Tiger for transportation CFO, Avant-garde for restaurant/hospitality CFO, Safety Net for diversified CFO). Show the operator name, headcount, and reported savings figure.
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Slide 5 — The implementation timeline. 6–8 weeks from signed agreement, all administrative work handled by the plan administrator, no operational changes required. CFO authorization is the only required action; everything else flows through the plan administrator.
Three slides of compliance evidence, one slide of math, one slide of timing. Nothing more. The CFO's job after the meeting is to call their outside CPA firm to validate the documentation — which the CPA firm can do in 30–60 days using only the Hitesman opinion + CBIZ review as inputs.
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.
Find Out Your Number.
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