Your business is paying more in payroll taxes than it legally has to.

Our Employee Savings Solution (ESS) is an IRS-approved supplemental benefit program that reduces your FICA tax liability and increases employee take-home pay, without changing your health plan or broker relationship.

7.65%

FICA Matching

$500–700

Avg. employer savings per employee per year

$3500

Avg. employee savings employee per year

7.65%

FICA match on every dollar — legally reducible

$500–700

Avg. employer savings per employee per year

$500–700

Avg. employer savings per employee per year

Annual Savings Estimate

$23,800

34 employees · Richmond, VA · Year 1

Employer FICA Reduction $1,417/mo

Employee Net Pay Increase $945/mo

IRS Compliant

Section 125

Zero change

What Stays Exactly the Same

Existing health coverage

Broker relationship

Payroll operations

◉ IRS Section 125 compliant

◉ 100 years of combined experience

◉ Zero disruption to your existing plan

◉ Serving employers nationwide

◉ IRS Section 125 compliant

◉ 100 years of combined experience

◉ Zero disruption to your existing plan

◉ Serving employers nationwide

— The cost of inaction

Every payroll run, your business sends more to the IRS than it has to.

As an employer, you match 7.65% in FICA taxes on every dollar of W-2 wages — Social Security and Medicare — on top of what your employees pay. Our ESS legally restructures how a portion of compensation is categorized, reducing the taxable wage base for both parties.

Same employees. Same pay. Less going to the IRS starting from your very next payroll run.

Example — 25 Employees · $42K Avg. Salary

$80,325

in annual employer FICA taxes — much of which is legally reducible under Section 125

7.65%

FICA Match Rate

$500–700

Saved / Emp. / Yr

Every

Payroll Cycle

7.65%

Employer FICA Rate

Matched on every dollar of W-2 wages. On a $500k payroll, that's $38,250 annually — before this strategy.

$500–700

Avg. Per Employee / Yr

Recurring savings every payroll cycle from the first run. No ongoing effort required from your team.

Zero

Plan or Broker Changes

Your health coverage, broker relationship, and payroll provider remain completely unchanged.

— EESS: Employee & Employer Savings Solution by SGH

What it is. What it does. Why it works for your business.

SGH's Employee Savings Solution is an IRS-approved supplemental benefit program built under Section 125 of the federal tax code. It allows a portion of employee compensation to be redirected through a pre-tax benefit structure reducing the taxable wage base for both employers and employees.

The result is immediate: your business owes less in payroll taxes from your very next payroll run. Employees receive more in their paycheck. Nothing changes about how they're covered, who your broker is, or how your payroll operates.

This isn't a workaround. It's the same legal framework behind FSAs and employer cafeteria plans and it's been part of federal law since 1978.

Check if you qualify →

IRS-approved under Section 125 since 1978

No new health plan — existing coverage unchanged

No cost to employees — take-home pay increases

Not a gray area — not a loophole — not a workaround

Payroll Tax Reduction Strategy — How Value Flows SEC. 125

Before

7.65% FICA

on full wage base

The EESS

Pre-tax benefit
restructure

After

↓ FICA owed

reduced wage base

Employer Gets

−FICA tax

on restructured wage base

Employee Gets

+ Net pay

higher take-home, same gross

Employer saves on FICA taxes

Reduced payroll tax liability from your very next payroll run. Recurring, every cycle.

Employees receive higher net pay

Take-home increases immediately — no change to gross compensation or employee cost.

Zero disruption to your existing plan

Health coverage, broker, and payroll provider unchanged. Your team won't feel a thing.

—— Implementation

Simple to start. No disruption. Three steps.

1

We assess your payroll

We review your payroll structure and calculate your estimated annual savings specific to your employee count and wage base. No commitment required — just the numbers.

2

We structure the program

We implement the strategy within your existing payroll system. No new health plan. No broker changes. Your team's involvement is minimal — we do the heavy lifting.

3

You save, employees earn more

From your next payroll run, your tax liability drops. Employees see the increase in take-home pay immediately. Recurring, every payroll cycle — permanently.

Implementation timeline Typical: 2–3 weeks

Strategy consultation Day 1

Program documentation Days 3–7

Payroll integration Days 8–14

First savings payroll run Days 15–21

Construction

Restaurants

Professional

Retail & More

—— Common questions

Questions business owners ask — answered straight.

Two objections come up more than any others.

Almost every business owner who looks at this asks the same two questions: Is this IRS compliant? And how disruptive is implementation? We've answered both, directly.

Is this actually IRS compliant?

Yes — not in a gray-area way. This EESS: Employee & Employer Savings Solution by SGH program operates under IRS Section 125, part of the federal tax code since 1978, designed to allow employers to offer pre-tax supplemental benefits. It's the same legal framework used by FSAs and employer cafeteria plans. Your CPA will recognize it immediately.

Will this distrupt our health plan or broker?

Not at all. The CHAMP Plan is supplemental — it doesn't replace or alter your current health insurance. Your broker stays. Coverage stays. The only change is how a portion of compensation is categorized for tax purposes, and we handle all of that.

How long does implementation take?

Typically 2–3 weeks from first consultation to your first savings payroll run. Your team's involvement is usually less than 3 hours total across the entire setup.

Does this cost our employees anything?

No. Employees benefit — their net take-home pay increases. There is no premium, no additional deduction, and no out-of-pocket cost added to their compensation.

—— Client results

What employers are finding out.

Restaurant group · 34 employees · Richmond, VA

$23,800

In annual employer FICA savings from year one on the ESS. No changes to health coverage or broker.

Implementation in under 3 weeks · Zero payroll disruption

Construction firm · 18 employees · Virginia

$11,700

Annual employer savings. Employees averaged $420 more per year in take-home pay from the first payroll run.

First savings visible on payroll within 2 weeks

⭐⭐⭐⭐⭐

"I was skeptical at first anything touching payroll makes me nervous. The SGH team walked us through every step and there was no disruption. The savings showed up on the very first payroll run."

Business Owner · HVAC Company · 22 Employees

—— Start here ——

Let’s Talk About Your Savings

If you have at least 5 W-2 employees and pay payroll taxes, you almost certainly qualify. Fill out the short form and we'll follow up within one business day.

Your exact savings estimate — calculated for your specific business on the strategy call
No obligation — if it's not a fit for your business, we'll tell you straight
Response within one business day — a member of the SGH team reaches out directly

Your business is paying more in payroll taxes than it legally has to.

Our Employee Savings Solution (ESS) is an IRS-approved supplemental benefit program that reduces your FICA tax liability and increases employee take-home pay, without changing your health plan or broker relationship.

7.65%

$500–700

$3500

7.65%

$500–700

$500–700

Every payroll run, your business sends more to the IRS than it has to.

As an employer, you match 7.65% in FICA taxes on every dollar of W-2 wages — Social Security and Medicare — on top of what your employees pay. Our ESS legally restructures how a portion of compensation is categorized, reducing the taxable wage base for both parties.

Same employees. Same pay. Less going to the IRS starting from your very next payroll run.

What it is. What it does. Why it works for your business.

SGH's Employee Savings Solution is an IRS-approved supplemental benefit program built under Section 125 of the federal tax code. It allows a portion of employee compensation to be redirected through a pre-tax benefit structure reducing the taxable wage base for both employers and employees.

The result is immediate: your business owes less in payroll taxes from your very next payroll run. Employees receive more in their paycheck. Nothing changes about how they're covered, who your broker is, or how your payroll operates.

This isn't a workaround. It's the same legal framework behind FSAs and employer cafeteria plans and it's been part of federal law since 1978.

Check if you qualify →

Simple to start. No disruption. Three steps.

We assess your payroll

We structure the program

You save, employees earn more

Questions business owners ask — answered straight.

Two objections come up more than any others.

Almost every business owner who looks at this asks the same two questions: Is this IRS compliant? And how disruptive is implementation? We've answered both, directly.

Is this actually IRS compliant?

Will this distrupt our health plan or broker?

How long does implementation take?

Does this cost our employees anything?

What employers are finding out.

$23,800

In annual employer FICA savings from year one on the ESS. No changes to health coverage or broker.

$11,700

Annual employer savings. Employees averaged $420 more per year in take-home pay from the first payroll run.

"I was skeptical at first anything touching payroll makes me nervous. The SGH team walked us through every step and there was no disruption. The savings showed up on the very first payroll run."

Let’s Talk About Your Savings

If you have at least 5 W-2 employees and pay payroll taxes, you almost certainly qualify. Fill out the short form and we'll follow up within one business day.

© 2026 SGH Business Solutions · Richmond, VA