Are You Paying the IRS More Than You Have To?

How Contractors Are Saving Thousands With SIMRP After ServiceWorld 2025

Are you a contractor who works hard all year only to watch a large portion of your profits disappear into taxes?
Do you ever look at your tax bill and wonder whether you are paying more than you are legally required to?

If so, you are not alone. During ServiceWorld 2025 in Las Vegas, the Freedom Blueprint Podcast hosted a conversation with Matthew Abbott of Abbott Family Insurance that revealed a little known but entirely legal strategy that is helping contractors keep more of what they earn.

If you want to reduce payroll taxes, improve benefits, and increase take home pay for your employees without inflating your costs, this breakdown will show you how.

Are You Overpaying in Taxes Without Realizing It

Let us start with a few direct questions.

Do your taxes feel disproportionately high compared to your actual profits
Have you tried offering benefits only to discover that the cost is higher than expected
Do you ever suspect that large large corporations understand strategies that small contracting companies are never taught

If you answered yes, you are experiencing a common but solvable issue.

The underlying problem

Contractors often rely on a CPA to handle financial guidance. The challenge is that CPAs and CFOs have two very different objectives.

A CPA focuses on minimizing taxable income.

A CFO focuses on maximizing operational income and business valuation.

If no one has ever shown you how these two competing perspectives directly affect your decision making, it becomes very easy to unknowingly overpay.

The Strategy Big Companies Use That Small Contractors Rarely Access

For years, Fortune 500 companies have used Section 105 and Section 125 tax codes to legally reduce taxable income and optimize their benefit structures. Smaller contractors have not implemented these strategies because the administrative process was far too complicated.

That barrier no longer exists.

Technology and specialized plan design have made it possible for contractors of any size to use the same system called the Self Insured Medical Reimbursement Plan, commonly known as SIMRP.

What SIMRP can do for your business

Reduce approximately 14,000 dollars in taxable income per employee each year.
Generate around 600 dollars in net tax savings per employee per year.
Lower FICA, FUTA and SUTA liabilities.
Increase employee take home pay.
Enhance your employee benefits offerings without increasing your overall costs.
Remain fully compliant with existing IRS guidelines.

Here is the key question.

If you could legally reduce payroll taxes for every eligible employee and keep more money inside your business, what would stop you from exploring it

Is This Going To Trigger an Audit

Most contractors share the same concern when they hear the words tax strategy.

Will this get me audited

Matthew addressed that concern directly.

Abbott Family Insurance works with school districts and nonprofit organizations that experience annual audits.
SIMRP plan includes a one hundred percent audit guarantee written into the service agreement.
Their internal legal team supports the client fully if an audit ever occurs.

So consider this question.

If the strategy is fully compliant and backed with complete audit support, what risk is left for you to carry

Why Contractors Struggle With Employee Benefits and Why SIMRP Changes the Equation

Providing employee benefits is one of the most difficult financial challenges in the contracting industry. Costs continue to rise. Minimum enrollment thresholds are difficult to meet. Employees decline coverage due to affordability. Renewal rates increase year after year.

This creates a cycle that prevents many contractors from offering benefits at all.

SIMRP can change the structure entirely.

How SIMRP supports more affordable benefit options

It can be paired with MEC Minimum Essential Coverage plans.
It works alongside hospital indemnity benefits.
It supports traditional buy up medical plans for employees who want stronger coverage.

This combination gives you flexibility, affordability, and stronger benefit offerings.

Ask yourself this.

If you could offer meaningful health benefits without increasing your costs, how would that impact recruiting, retention, and company culture

Will This Affect My W-2 or Social Security Earnings

Employees often worry about this and employers want clarity.

Here is the truth.

Gross W-2 income is not reduced.
Mortgage lenders and financial institutions still see the full income amount.
Social Security is based on long term average gross income rather than monthly tax contributions.

Employees maintain strong financial positioning, increase their net pay, and gain additional benefits without sacrificing their future opportunities.

The First Online Benefits Pricing Tool Built for Contractors

At ServiceWorld 2025, Abbott Family Insurance introduced the first contactless online employer benefits pricing tool designed specifically for contractors.

Here is what it means for you.

Upload your census through a secure encrypted portal.
Receive competitive quotes from top carriers.
Review your options without phone calls or sales pressure.
Make decisions on your preferred timeline.

Consider this.

If you could obtain a benefits quote in minutes instead of days, would you finally check whether you are overpaying

Most contractors say yes.

A Contractor Solving Contractor Problems

Matthew Abbott is not a typical insurance broker. He grew up in the trades, served in the military, and later led a plumbing service department. After a career changing injury, he entered the benefits industry and built Abbott Family Insurance to solve the financial challenges he watched contractors struggle with year after year.

Today the company is the number one benefits administrator for contractors nationwide.

His mission is straightforward. Contractors deserve access to the same tax and benefit strategies that large corporations have used successfully for decades.

The Decision Every Contractor Faces

Before you close this page, consider these questions.

What happens if you continue operating the same way this year
How much will you pay in unnecessary taxes by not reviewing your options
What could six thousand, fifteen thousand or sixty thousand dollars do for your business
What is the downside of reviewing a compliant tax and benefits strategy that produces immediate savings

There is no downside.

Get Your Contractor Tax Savings Estimate

You can review your projected SIMRP savings and benefits options through the secure online tool from Abbott Family Insurance.

Upload your census confidentially.
Receive contractor specific benefit quotes.
View your estimated SIMRP tax savings per employee.
Move forward only if the numbers make sense for your business.

The final question is simple.

Are you ready to stop overpaying the IRS and use the same strategies successful large employers rely on every year

Watch the Full Interview

If you want to hear the complete conversation directly from the Freedom Blueprint Podcast, including Matthew Abbott's full explanation of SIMRP, contractor tax strategy, and the future of benefit design in the trades, you can watch the full interview below.

The video provides examples, stories, and clarifying details that extend beyond this written summary.

Watch the interview here