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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 Savings |
$0 |
$3,500 |
*Note-this illustration approximates the amount of employer savings. The actual amount will vary depending on your employees' contributions and your workers' compensation rates.
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