Company Savings Estimator
See the full picture: employer tax savings, employee tax savings, and combined impact of a Section 125 plan. Instant results, no email required.
Estimated Annual Savings
Total Combined Annual Savings
$0
Employer + Employee savings each year
Employer Savings
$0
FICA + SUTA tax savings
Employee Savings
$0
FICA + income tax savings
Per Employee Savings
$0
Average annual benefit per person
5-Year Cumulative Savings
$0
With 3% annual salary growth
Participating Employees
0
Based on participation rate
Savings Breakdown
| Source | Employer | Employee | Combined |
|---|---|---|---|
| Total Annual Savings | $0 | $0 | $0 |
5-Year Savings Projection
Assumes 3% annual salary growth and stable participation.
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How we calculate: Employer FICA is 7.65% (6.2% Social Security on wages up to $176,100 + 1.45% Medicare). Employee FICA mirrors employer rates. Federal income tax uses the 22% marginal bracket estimate. State income tax uses the selected state's top marginal rate. SUTA is estimated at 2.7% on the first $10,000 of wages (varies by state).
Social Security wage base: For employees earning above $176,100 (2025), only the 1.45% Medicare portion applies. This calculator adjusts for that threshold.
These estimates are illustrative. Consult a qualified tax professional for advice specific to your situation.
How This Works
A Section 125 cafeteria plan lets employees pay for benefits with pre-tax dollars. This reduces taxable wages, which saves both the employer and employee on payroll taxes and income taxes.
The employer saves on FICA (7.65%) and state unemployment tax (SUTA). Employees save on FICA plus their federal and state income tax rates.
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FICA Savings Calculator
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Have questions?
Sarah can explain how savings are calculated and answer any benefits questions.
Ready to implement Section 125 for your team?
David can walk you through plan design, setup, and ongoing administration.
Talk to DavidDisclaimer: 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.
