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 SBPWith 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)


Cost of SBP

Annual Net Savings