How K&J Mechanical uses New Tax Strategies to Improve their Benefits and Bottom Line
Video Testimonial of K&J Mechanical at the end of the article!
As a small business owner, Cory, owner of K&J Mechanical, knew that taking care of his employees was just as important as taking care of his customers. However, like many businesses, he was struggling with the rising cost of healthcare benefits. Every year, premiums went up, payroll expenses increased, and it became harder to offer competitive benefits without impacting the company's bottom line.
That’s when Cory turned to Abbott Family Insurance for a solution that would transform the way his company managed employee benefits.
The Financial Struggle
Cory wanted to provide the best benefits possible for his employees, but with the healthcare costs climbing, and payroll-related taxes eating away at potential profits, it was tough. He needed a plan that would lower expenses while improving employee coverage—something that seemed impossible at the time.
Faced with these challenges, Cory needed a new approach—one that could both ease the financial burden on his business and improve the benefits his employees relied on. That’s when he discovered SIMRP, a strategic solution designed to reduce costs without sacrificing coverage.
How SIMRP Helps Businesses Save Money and Offer Better Benefits
The Self-Insured Medical Reimbursement Program (SIMRP) is a proven strategy that allows businesses to reduce tax liabilities while funding essential employee benefits like Cancer Insurance, Heart Attack Insurance, and Accident Insurance.
By utilizing existing treasury codes, SIMRP helps businesses create a new source of funding for these benefits, effectively lowering taxable income for both the company and employees.
How SIMRP Works:
1️⃣ Your company integrates the Preventive Care Management Program (PCMP) into its benefits package, giving employees access to valuable services.
2️⃣ Employees receive complimentary telemedicine visits, Mayo Clinic professional programs, legal and financial support, and more—without additional out-of-pocket costs.
With SIMRP, businesses save money while enhancing employee benefits, making it a smart, sustainable solution for long-term financial health.
After assessing K&J Mechanical’s financials and existing benefits package, we introduced a game-changing strategy:
✅ $14,400 saved annually on major medical premiums
✅ $547 saved per month in payroll-associated taxes using SIMRP (Self-Insured Medical Reimbursement Plan), adding up to $6,500 per year
✅ Employees received a fully funded benefits package covering accident and critical illness insurance
A New Outlook for K&J Mechanical
Thanks to these changes, K&J Mechanical is now in a stronger financial position. Not only did Cory cut down on unnecessary expenses, but he also reinforced his company’s commitment to its employees. His team now enjoys better benefits at no extra cost to them, leading to higher job satisfaction and employee retention.
“It was a no-brainer. We saved money before we even paid for the service. That’s a huge deal for a business like ours.” — Cory, Owner of K&J Mechanical
What This Means for Other Business Owners
If you’re struggling with rising healthcare costs and payroll-related expenses, you’re not alone. Many businesses face the same challenges, but the right strategy can unlock significant savings while keeping your employees happy and secure.
Lower your healthcare costs without cutting benefits
Reduce payroll tax liabilities through smart financial planning
Offer top-tier benefits without added expenses
Ready to Take Control of Your Business Health Benefits?
BDR Group specializes in helping businesses like K&J Mechanical achieve cost savings while improving benefits packages. Don’t wait until rising costs force tough decisions—take action today and start saving while strengthening your workforce.
Contact us now to explore a better benefits strategy for your business!
