118 | How Contractors Cut Taxes with Smarter Benefits: $600/Employee Back with Matthew Abbott (Live from Service World 2025)

Show InformationEpisode Number: 118Date: November 26, 2025Duration: 24:10Host Contact InformationHost: Justin DeeseWebsite: JustinDeese.comContact: [email protected] Contact InformationGuest: Matthew AbbottCompany: Abbott Family InsuranceGuest Website: Abbottfamilyagency.comGuest email: [email protected] from Service World 2025 in Las Vegas, Justin and guest co-host/Virtual CFO Kristen Deese sit down with Matthew Abbott of Abbott Family Insurance to unpack a turnkey way contractors can legally lower taxable wages, reduce FICA/FUTA/SUTA, and still make employees whole—often putting ~$600 net back per employee per year. You’ll hear how a Self-Insured Medical Reimbursement Plan working alongside Section 125/105 cafeteria and medical reimbursement rules can be implemented without disrupting payroll, why it doesn’t tank Social Security earnings history, and how MEC options help smaller shops finally offer benefits that recruit and retain. Matthew also previews a no-sales-call, secure online pricing tool for employer benefits.TakeawaysCFO vs. Tax Pro: Same numbers, different goals—valuation vs. tax minimization can (and should) work together.Strategy basics: Pair Section 125 cafeteria plans with Section 105 medical reimbursements to lower taxable income while reimbursing employees to keep take-home whole.Contractor impact: Roughly $14,000 reduction in taxable wages per employee can net ~$600/year to the business per employee (on average).Compliance confidence: Matthew’s team backs implementations with audit support and experience working with audited public-sector groups.W-2 & Social Security: Taxable income drops, but reported gross for things like loans and long-run Social Security calculations remains intact.Benefits mix: Combine MEC (Minimum Essential Coverage) for affordability with buy-up major medical options to boost enrollment and retention.Coming soon: A secure, contactless employer-benefits pricing tool to compare plans without the sales-call gauntlet.ChaptersMeet Matthew Abbott & why taxes ≠ growth: setting CFO vs. CPA expectationsWhat is a Self-Insured Medical Reimbursement Plan (and why big companies already use it)How the plan flows through payroll: pre-tax reduction + after-tax reimbursementThe math for contractors: shrinking FICA/FUTA/SUTA and capturing ~$600/employee/yearAudit posture & why public-sector experience mattersTech-forward enrollments: simple portals and mainstream carrier networks/TPAsMEC plans for small teams: affordable entry + optional buy-upsW-2 box details, mortgages, and Social Security averages clarifiedPricing pressure, retention, and avoiding “set it & forget it” benefitsAnnouncement: contactless online pricing tool & how to reach MatthewKeywords#ContractorTaxSavings #Section125 #Section105 #CafeteriaPlan #MedicalReimbursement #SIMRP #SelfInsuredBenefits #FICA #FUTA #SUTA #MECPlans #EmployeeBenefits #HomeServiceContractors #VirtualCFO #Valuation #EBITDA #Recruiting #Retention #PayrollStrategy #ServiceWorld2025Mentioned in this episode:Homeservicehoorah.com