Show Information

Episode Number: 118

Date: November 26, 2025

Duration: 24:10

Host Contact Information

Host: Justin Deese

Website: JustinDeese.com

Contact: [email protected]

Guest Contact Information

Guest: Matthew Abbott

Company: Abbott Family Insurance

Guest Website: Abbottfamilyagency.com

Guest email: [email protected]

Summary

Live 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.

Takeaways

• CFO 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.

Chapters

• Meet Matthew Abbott & why taxes ≠ growth: setting CFO vs. CPA expectations
• What 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 reimbursement
• The math for contractors: shrinking FICA/FUTA/SUTA and capturing ~$600/employee/year
• Audit posture & why public-sector experience matters
• Tech-forward enrollments: simple portals and mainstream carrier networks/TPAs
• MEC plans for small teams: affordable entry + optional buy-ups
• W-2 box details, mortgages, and Social Security averages clarified
• Pricing pressure, retention, and avoiding “set it & forget it” benefits
• Announcement: contactless online pricing tool & how to reach Matthew

Keywords

#ContractorTaxSavings #Section125 #Section105 #CafeteriaPlan #MedicalReimbursement #SIMRP #SelfInsuredBenefits #FICA #FUTA #SUTA #MECPlans #EmployeeBenefits #HomeServiceContractors #VirtualCFO #Valuation #EBITDA #Recruiting #Retention #PayrollStrategy #ServiceWorld2025

Mentioned in this episode:

SERVICE MANAGER ACADEMY 2026

WWW.SERVICEMANAGERTRAINING.COM