Payroll Tax Savings Calculator
What would your company keep?
Move the slider. You'll see the gross FICA reduction, the program fee, and the net savings your company actually keeps. No email required to see the number.
Count full-time W-2 employees on payroll. Exclude 1099 contractors and owners who don't take W-2 wages.
Only employees at 30+ hours per week can participate. Part-time staff simply aren't counted.
Participants must already have qualifying health insurance — group or individual. If they don't, that's a fixable first step, not a disqualification.
The three requirements
10+ W-2 employees · 30+ hours per week · qualifying health coverage in place. All three have to be true for an employee to participate.
Estimated annual figures
Your net annual savings
About $0 per month, at $0 out-of-pocket cost to implement.
Figures are estimates based on typical program parameters and assume eligible, participating W-2 employees with qualifying coverage. Gross savings are calculated at $1,119.96 per participating employee per year; the program administration fee is $40 per participating employee per month. Actual results vary by participation, wage levels, state, and plan design. This is not tax or legal advice — please confirm with your CPA.
The detailed version
Get the itemized analysis
The calculator gives you the headline. The analysis gives you the document you can hand to your CPA or your CFO.
- Per-employee breakdown — gross savings, fees, and net, employee by employee
- Your total payroll reduction and what it does to your quarterly filings
- The benefits your employees receive, and the proof their take-home pay doesn't change
- An implementation timeline with real dates, not "contact us to learn more"
We'll follow up personally — usually within one business hour. No call center, no lead resale, no obligation.
Before you ask
Questions about the numbers
Why do you show the fee when nobody else does?
Because you'd find it anyway, and finding it late is what kills deals. The gross figure of roughly $1,120 per employee per year is accurate, but there's a $40 per-employee monthly administration fee that comes out of it. Net is about $640 per employee per year.
That's still a strong return on zero dollars invested. We'd rather lead with a number that survives your CPA's review than one that doesn't.
Does this cost my company anything to set up?
No. There's no implementation cost, no platform fee, and no upfront spend. The administration fee is per participating employee and is netted against the FICA savings the program generates — which is why the net figure is the one worth looking at.
Do my employees lose take-home pay?
No. Their net paycheck is designed to stay the same. A pre-tax deduction reduces their taxable wages, and a non-taxable reimbursement under the plan brings their net pay back to where it was. They gain benefits without losing income — and we'll show them the before-and-after paycheck during enrollment.
What if only some of my employees qualify?
That's normal and it still works. Only employees who are W-2, working 30+ hours per week, and carrying qualifying health coverage participate. The program runs on that group, and your savings scale to that count. We'll size it accurately from your census before you commit to anything.
Is this actually compliant?
The structure operates under Section 125 of the Internal Revenue Code along with IRC §105(b), §106(a), §213(d), and §104(a)(3), and is designed to meet ERISA, HIPAA, and ADA requirements. Plan documents, a Section 125 cafeteria plan document, and SIMERP documentation are issued for your file, and audit support is included.
We'd still encourage you to run it past your own CPA — and we'll give them everything they need to evaluate it. See the full mechanics and code citations →