The 2026 Reality Check
If you’re a business owner looking at your 2026 budget, the numbers are jarring. Preliminary filings show that small group health insurance premiums are projected to rise by a median of 11% this year.
Most brokers will tell you that your only options are to pay more or offer less. They’re wrong.
The Summit Secret: Tax Architecture
The secret isn't in the insurance plan itself; it's in the tax architecture of how you deliver it. Smart employers are using Section 125 plans to reclaim the 7.65% FICA tax that most businesses "donate" to the IRS.
Important: 2026 Compliance Calendar
| Deadline | Requirement |
|---|---|
| Jan 31, 2026 | W-2 Distribution (Report health coverage) |
| Feb 28, 2026 | ACA 1094-C/1095-C Paper Filing |
| March 31, 2026 | E-filing Deadline for ACA Reporting |
How It Works
By implementing a compliant Section 125 Cafeteria Plan, your employees pay for their portion of benefits before taxes are calculated.
- For the Employee: Taxable income drops, increasing take-home pay.
- For You: Your FICA tax liability drops by 7.65% on every dollar shifted.
For many of our clients, these savings completely offset the cost of the premium increase.
Ready to see your 2026 "Hidden" Savings?
Use our 2026 Savings Calculator in the sidebar to see exactly how much FICA tax your business can reclaim. Learn more about Section 125 plans and contact us for a free consultation.