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A Section 125 wellness program lets employers lower payroll taxes by an average of about $500 per employee per year, while employees often take home $100 to $200 more each month with no change in salary. In Episode 74, Ed De La Rosa, CPA, explains how the program works alongside existing health insurance and what it means for business owners planning an exit. Most new employee benefits come with a bill. Either the owner pays for it or the employees pick up the tab. Steve Burton sits down with Scale to Sell teammate Ed De La Rosa to talk about a program built to work differently. Ed is a CPA and has been an Ed Slott trained advisor since 2019, including time serving on Ed Slott's board. He has spent years helping business owners increase company value, prepare for a sale, and reduce taxes along the way. Ed walks through how a provision tied to the Affordable Care Act, available since 2014, allows employers to pair a Section 125 cafeteria plan with a wellness program that enhances their existing major medical coverage. The payroll tax savings are realized with each payroll run rather than claimed later as a refund. Employees gain zero copays on in-network doctor visits and about 5,000 acute-care prescriptions, along with virtual care and mental health support. For owners thinking about an exit, the connection is direct. Stronger margins and steadier health care costs make a business more attractive to a buyer. Chapters 00:00 Net zero cost: the short version 00:37 Introducing Ed De La Rosa 02:36 Why a wellness program belongs in exit planning 03:00 Section 125 and the 2014 ACA provision 04:31 What it costs the employer 05:30 What employees gain in take-home pay 05:57 Does it replace health insurance? 07:05 Impact on health premiums over time 08:05 Using it without major medical: MEC and minimum value 09:35 Virtual care, mental health, and pet telehealth 11:04 How the quote process works 12:42 Which companies it works for Steve and Ed discuss: Why a wellness program belongs in an exit planning conversation How Section 125 plans and the 2014 ACA provision work together The "net zero cost" structure and why savings arrive with each payroll Average employer savings of about $500 per employee per year Why employees typically take home $100 to $200 more each month How the plan enhances major medical rather than replacing it Zero copays on in-network doctor visits and roughly 5,000 prescriptions Virtual care, mental health support, wellness tools, and telehealth visits for pets How two to three years of loss runs can help stabilize premium increases What employers with more than 50 employees need to know about MEC and minimum value How the quote process works through ADP and other major payroll providers Why companies from a handful of employees to Fortune 50 firms are using it Frequently asked questions What is a Section 125 wellness program? It pairs a Section 125 cafeteria plan with a wellness benefit. Employees pay for part of their benefits with pre-tax dollars, which lowers taxable payroll for both the employer and the employee. Does a Section 125 wellness plan replace health insurance? No. It is designed to enhance existing major medical coverage. Employees can use it for in-network doctor visits and acute-care prescriptions with zero copays, while major medical stays in place. How much can an employer save? Ed De La Rosa reports conservative average savings of about $500 per employee per year in payroll taxes. The savings are realized with each payroll run, not claimed later as a refund. How much more do employees take home? On average, employees see $100 to $200 more per month, depending on their state, income, and family size. Can a company use the program without offering major medical? Yes, but there are tradeoffs. Employers with more than 50 employees must meet ACA coverage requirements. The wellness plan meets minimum essential coverage but not minimum value, so a smaller penalty may still apply. What is needed to get a quote? Companies using ADP or another major payroll provider can authorize access to payroll data for an employee-by-employee quote. Others can provide a payroll summary as a PDF or spreadsheet. Want to see the numbers for your company? Book a discovery call at ScaletoSell.com/discovery and Ed's team will build a quote down to each employee. Resources: Book a Discovery Call: ScaletoSell.com/discovery Free Business Valuation: ScaletoSell.com/value How to Beat the IRS, Legally: [link] Episode 071: How to Beat the IRS Legally: Tax Planning Strategies for Business Owners Episode 073: How to Do a Roth Conversion Without Draining Your Retirement Savings to Pay the Tax with Ed Lyon All episodes: ScaletoSell.com/podcast Connect with Our Team: Website: Scale to Sell Email: [email protected] Phone: 757-313-4080 LinkedIn: Scale to Sell Facebook: facebook.com/ScaletoSell Instagram: @scaletosell YouTube: Scale to Sell Connect with Adam Burton and Steve Burton: LinkedIn: Adam Burton LinkedIn: Steve Burton This episode is for educational purposes only and is not tax, legal, or investment advice. Consult a qualified professional about your specific situation.

Episode 73: How to Do a Roth Conversion Without Draining Your Retirement Savings to Pay the Taxes Back in 2010, the income limits on Roth conversions went away, and Steve Burton expected clients to line up at the door. They did not. Most people agreed a conversion made sense right up until the moment they had to write the check to the IRS. In this episode, Steve sits down with Ed Lyon, J.D., our certified tax and business advisor and co-author of How to Beat the IRS, Legally, to talk about why so few people convert and what has changed. Ed explains why the traditional CPA approach of converting a little each year guarantees you pay at least your current tax rate on every dollar, and how the Roth Accelerator strategy uses business and investment vehicles that create depreciation deductions and tax credits to offset some or all of the income from the conversion. Ed calls the future tax bill inside a pretax IRA a tumor. It will not kill you, but it is going to hurt, and it grows every year you leave it alone. For a business owner with a couple million dollars in a 401(k) at age 50, those required minimum distributions could become $1 million a year of taxable income they never needed. If you have half a million dollars or more sitting in pretax accounts, this conversation is worth your time. In this episode: Why people did not rush to convert when the 2010 income limits disappeared The fundamental challenge of a Roth conversion: recognizing the income now Why the "fill up your bracket" CPA strategy still leaves you paying today's rate How the Roth Accelerator offsets conversion income with depreciation and tax credit strategies Where the money goes after it leaves the pretax environment The ideal candidate: roughly $500,000 or more in IRAs, 401(k)s, TSPs, or 403(b)s How required minimum distributions at age 73 can turn into a tax problem you do not need The real risk of converting: making a big decision without knowing future tax rates Why bringing your effective conversion rate down to around 10% makes a mistake much less likely Why your kids would rather inherit $1 million in a tax-free bucket than $1 million in an IRA (and the 10-year rule) About our guest: Ed Lyon, J.D., is a tax attorney, a certified tax and business advisor, and co-author of How to Beat the IRS, Legally. He works with business owners and families to legally reduce income taxes, capital gains on business and real estate sales, and the future tax burden sitting inside retirement accounts. Ready to see your numbers? There is no downside to getting an MRI on your pretax money. Schedule a discovery call and our team will run the analysis, show you what your future tax bill looks like, and tell you whether a Roth conversion strategy makes sense for you. Book your discovery call at ScaletoSell.com/discovery Catch these episodes next: Episode 58: How business owners can legally pay less in taxes, with Ed Lyon Episode 71: How to Beat the IRS Legally and Tax Planning Strategies for Business Owners Listen to all episodes Connect with Scale to Sell: Website: ScaletoSell.com Free Business Valuation: ScaletoSell.com/value Podcast: ScaletoSell.com/podcast Facebook: facebook.com/ScaletoSell Instagram: @scaletosell YouTube: Scale to Sell on YouTube Email: [email protected] Phone: 757-313-4080 This episode is for educational purposes only and is not tax, legal, or investment advice. Every situation is different, so talk with a qualified professional before making changes to your retirement accounts.

072: Building a Successful Company and Keeping More of What You Earn with Giac Biscotti Giac Biscotti joined the Navy at 18, fresh out of Brooklyn, and retired 26 years later as an air traffic controller. He spent the next couple of years inside a large company, where he learned how the business world works and noticed how much he missed the camaraderie of the military. When the government asked him to serve as deputy program lead on a brand-new landing system, he and his wife Holly (a fellow Navy air traffic controller) talked it over, prayed about it, and started ATCSI, a veteran-owned business built on the values they learned in uniform. Today Giac is CEO of ATCSI and Dynamic Science Inc., an air traffic control company close to 80 years old that he and Holly acquired because its leaders shared their values. Their teams work coast to coast, in Japan, in Europe, and as far out as the Marshall Islands. That kind of reach makes micromanagement impossible, which suits Giac fine. He hires the right people and trusts them to use the talent they have. In this conversation with Steve Burton, Giac talks about what changed when the quarterly checks to the IRS grew larger than anything he expected to earn, and why tax strategy for business owners is a different job than tax preparation. His longtime CPA, a great guy who once worked for Giac's brother, told him he had outgrown the relationship. Giac's picture of the difference is simple. A CPA who prepares your return is driving while looking in the rearview mirror, and a tax strategist is looking out the front window. For Giac and Holly, the money they keep matters because of what it makes possible (veterans making the SkillBridge transition, causes they believe in, young people looking for their first job). As Giac puts it, God does not bless us so we can hold on to it. He blesses us so we can be a blessing to someone else. Steve and Giac discuss: Why Giac left a large company after two years and what the corporate world taught him about business How 26 years as a Navy air traffic controller shaped the way he leads and why he pays attention to the small details Why ATCSI acquired Dynamic Science, a nearly 80-year-old company that already shared their values Leading teams across the U.S., Japan, Europe, and the Marshall Islands without micromanaging How Giac and Holly divide the work as husband and wife and as business partners The difference between a CPA who files your return and a tax strategist who plans ahead Why the physician who gives you a checkup is not the one you want doing your surgery, and what that means for your taxes How faith and stewardship shape what they do with what they keep And more! Resources: Get your free personalized report at www.scaletosell.com/value Book your free discovery call with us today! www.scaletosell.com/discovery Get your copy of How to Beat the IRS, Legally www.scaletosell.com/discovery  Listen to Episode 071: How to Beat the IRS Legally and Tax Planning Strategies for Business Owners Connect with Giac Biscotti: ATCSI: atcsi.com Dynamic Science Inc.: dynamicscience.com LinkedIn: Giac Biscotti Connect with Our Team: Website: Scale to Sell [email protected] Facebook: Scale to Sell YouTube: Scale to Sell Instagram: Scale to Sell Connect with Adam Burton and Steve Burton: LinkedIn: Adam Burton LinkedIn: Steve Burton

Episode Summary "My CPA of almost 30 years has never brought me anything that's helped me save anything in taxes." That's not a stranger talking. That's Steve Burton, describing his own accountant, before he spent two decades looking for someone who actually did tax planning instead of tax reporting. In this episode, Adam and Steve sit down to talk about How to Beat the IRS, Legally, the new book Steve wrote the foreword for alongside tax planner Ed Lyon. They break down the real difference between a CPA who keeps you compliant and a tax planner who actively works to reduce what you owe, using real examples, including one where a $500,000 capital gains bill on a piece of real estate was legally brought down to $50,000. Adam and Steve discuss: Why Steve spent over twenty years looking for a CPA who actually did tax planning, and the "red light, green light" distinction the book uses to explain the gap between compliance and strategy. A real example where a business owner's CPA told him to write a $500,000 check on a real estate sale, and how proactive tax planning brought that bill down to $50,000. Why $400,000 in income tends to be the pain point where tax bills start to sting, and why tax planning has to happen in the current year, not the one you're filing for. Why these strategies, once reserved for the ultra-wealthy, are becoming available to business owners and upper middle class individuals who are paying more than they realize. And more! Resources: Get your free copy of How to Beat the IRS Legally (while supplies last) at scaletosell.com/discovery Get your free personalized report at www.scaletosell.com/value Unlock your business's potential with our free Scale to Sell self-assessment What Your CPA Isn't Telling You About Your Exit (Ep. 69) Connect with Our Team: Website: Scale to Sell [email protected] LinkedIn: Scale to Sell Facebook: Scale to Sell YouTube: Scale to Sell Instagram: Scale to Sell Connect with Adam Burton and Steve Burton: LinkedIn: Adam Burton LinkedIn: Steve Burton

Episode Summary Only 20 to 30% of businesses that go to market ever actually sell. Of the ones that do sell, most owners aren't happy with the outcome a year later. Somewhere between those two numbers sits a set of assumptions that feel true right up until the moment they cost you. In this episode, Adam and Steve Burton walk through six misconceptions they hear constantly from business owners: about dependency, personal finances, taxes, life after the exit, timing, and industry multiples. Each one feels reasonable in the moment. Each one quietly limits what an owner actually walks away with. Adam and Steve discuss: Why "the business can't run without me" feels like a badge of honor but is actually an inverse relationship with value, and how owner dependency shows up as risk to any buyer. Why personal and business finances aren't separate conversations, using a real client example where a couple's stated income was less than half their actual income once every benefit was counted. Why "I'll figure out what I want to do with my life after I sell" leads to regret, since most owners never build a picture of their next chapter before they're standing in it. Why "a good industry multiple means I'll get a good outcome" is a myth, since two businesses with identical revenue can land on completely different multiples depending on systems, leadership, and what the transcript calls the business's "intangible capital." And more! Resources: Get your free personalized report at www.scaletosell.com/value Unlock your business's potential with our free Scale to Sell self-assessment Book your free discovery call with us today! What Your CPA Isn't Telling You About Your Exit (Ep. 69) Connect with Our Team: Website: Scale to Sell [email protected] LinkedIn: Scale to Sell Facebook: Scale to Sell YouTube: Scale to Sell Instagram: Scale to Sell Connect with Adam Burton and Steve Burton: LinkedIn: Adam Burton LinkedIn: Steve Burton