Employer FICA Savings Calculator
See exactly how much your company could save on payroll taxes with a Section 125 plan. Enter your numbers below. Results are instant and completely free.
Your Estimated Annual Savings
Employer FICA Savings
$0
Social Security + Medicare combined
Employee FICA Savings (Total)
$0
Combined across all participants
Per Employee Savings
$0
Average increase in take-home pay
Participating Employees
0
Based on participation rate
Social Security Savings (6.2%)
$0
On wages up to $176,100
Medicare Savings (1.45%)
$0
On all wages (no cap)
Note: These estimates account for the Social Security wage base cap of $176,100 (2026). The 6.2% Social Security tax only applies to wages up to this threshold. The 1.45% Medicare tax applies to all wages with no cap.
How the cap works: For employees earning above $176,100, pre-tax deductions only save the 1.45% Medicare portion on income above the cap. The full 7.65% savings applies only to the portion of wages at or below the wage base. Income tax savings are not included in this estimate.
Consult a qualified tax professional for advice specific to your situation.
Ready to capture these savings?
A licensed benefits professional can set up your Section 125 plan and help your company start saving.
Talk to DavidHow This Works
When benefits are deducted pre-tax through a Section 125 plan, both the employer and employee avoid paying FICA (7.65%) on those dollars. This calculator shows the employer-side savings. Employees save the same percentage plus their income tax rate.
Learn more about FICA savings →Ask Sarah
Questions about FICA taxes or Section 125 plans? Chat with Sarah, our benefits expert, for instant answers.
Understanding FICA Savings
See the mechanics behind pre-tax benefit deductions. How they reduce payroll taxes for both you and your employees.
How FICA Savings Work
Watch the overview, then check out the infographic on the right for a visual breakdown.
How Pre-Tax Deductions Save Money
The order of deductions matters. Pre-tax means lower taxable wages for both employer and employee.
7.65% FICA Rate
6.2% Social Security + 1.45% Medicare. Both employer and employee pay this on taxable wages.
IRS-Approved
Section 125 cafeteria plans are established under the Internal Revenue Code. Fully legal and widely used.
30–45 Day Setup
Most companies are up and running quickly. Savings start with the very first payroll cycle.
Ready to implement Section 125 for your team?
Schedule a free consultation with a benefits specialist who can walk you through the setup process and answer all your questions.
