EmployER Savings
Employer benefits using the Shared Benefits Plan (SBP) are:
- Reduced Payroll-related taxes
- Reduced Workers' Compensation costs
- Minimal cost to implement
| Employer tax savings illustration: | Without SBP | With SBP |
|---|---|---|
| Typical Annual Payroll | $500,000 | $500,000 |
| Less Pre-Tax Employee Benefit Premiums and HSA Contributions | $0 | $35,000 |
| Taxable Payroll To Employer | $500,000 | $465,000 |
| *Estimated Employer Paid FICA Taxes and Workers Compensation Premiums (10%) | $50,000 | $46,500 |
| Annual FICA & Work Comp Savings | $0 | $3,500 |
*NOTE: this illustration approximates the employer savings. The actual amount will vary depending on employees contributions and an employer's Workers' Compensation rate. To view the Final Regulations for the Tax Treatment of Cafeteria Plans, click here.
Estimated EMPLOYER Financial Savings Worksheet
Employee Contributions to Health Premiums (Annual)
FICA rate
Estimated Workers Comp Rate
Total Savings % (B+C)
TOTAL SAVINGS (A*D)
Cost of SBP
Annual Net Savings