Section 125 ROI Calculator
See whether a Section 125 plan pays for itself, and how fast, based on your own numbers. Adjust the inputs below and watch the math update in real time.
Includes health, dental, vision premiums, FSA contributions, etc.
Per total employees, not just participants
Breakeven Point
Month 1
When cumulative savings exceed cumulative costs
Year 1 Net Savings
$0
Savings minus all costs in year one
Total Net Savings
$0
Over the full projection period
ROI
0%
Return on investment over projection
Cost of Doing Nothing
$0
Total FICA overpayment if you wait
Savings vs. Costs Timeline
Year-by-Year Breakdown
| Year | FICA Savings | Admin Costs | Net Savings | Cumulative Net | ROI % |
|---|
The Price of Waiting
Over 5 years, NOT implementing Section 125 costs you
$0
That's money your company is leaving on the table in unnecessary FICA taxes. Every single pay period.
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How we calculate: Employer FICA savings = participating employees x average pre-tax deduction x 7.65%. Admin costs are charged on all employees (not just participants). Setup cost is applied once in month 1. ROI = (total savings - total costs) / total costs x 100.
These estimates are illustrative. Actual results depend on your payroll structure, participation rates, and plan design. Consult a qualified benefits advisor for projections specific to your organization.
Ready to capture these savings?
A licensed benefits professional can set up your Section 125 plan and help your company start saving.
Talk to DavidWhy ROI Matters
The savings side is fixed by the tax code: the employer skips 7.65% in FICA on every dollar an employee runs pre-tax (IRC Section 3111), and the employee skips it too.
The cost side, a one-time plan document plus an ongoing administration fee, depends on your company size and which benefits you include. A licensed professional prices it for your situation so you can weigh the cost against the savings.
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Company Savings Estimator
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FICA Savings Calculator
Deep dive into FICA tax savings
Have questions?
Sarah can help explain ROI calculations and answer any benefits questions.
Disclaimer: Savings estimates are illustrative and based on general FICA tax rates and assumptions. Actual savings vary based on your organization's size, payroll structure, employee participation rates, plan design, and applicable state/federal regulations. Consult your tax advisor or benefits consultant for projections specific to your situation.
Ready to start saving?
A benefits specialist can walk you through plan setup, costs, and a timeline customized for your team.
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