SOLO 105 is an employer-sponsored employee benefit.  The deductibility of premiums and medical expenses is based on a reimbursement of allowed expenses by the business is based on reimbursements of these expenses to a qualified employee.  While the employee compensation can, in large part, be in employee benefits (medical reimbursements), there must also be a W-2 wage component to document the employer/employee relationship.  Two elements that are required by our Third-Party Administrator's wage standards are that:

1. 20% of total compensation should be in W-2 wages and
2. Wages paid must be "reasonable" based on prevailing wages of local area for the job description

USE THE CALCULATOR BELOW TO CALCULATE YOUR MONTHLY PAYROLL AND WHETHER THE HOURLY RATE SATISFIES #2 ABOVE

Payroll and Reasonable Compensation Calculator