Employer guide
Employer payroll tax vs. benefits savings
Employer payroll tax is what your business owes on taxable pay. A benefits savings estimate shows what might change if you add a program. Use your payroll report to find the first number. Compare payroll and plan costs to check the second.
Calculate my payroll taxesUse the right number for the job
| Number | What it answers | What to use |
|---|---|---|
| Employer FICA tax | How much do I owe for Social Security and Medicare? | Taxable wages, federal tax rates, and the Social Security cap |
| Potential benefits savings | How much might our costs change if we add a program? | Who can join, who signs up, payroll changes, and plan costs |
Try one benefits estimate
Say your business has 50 W-2 employees and 30 join. At the calculator’s example of $620 per person who joins, the estimate comes to $18,600 for a full year. The $620 is a program assumption. Federal payroll taxes use IRS rates and each employee’s taxable wages.
Get a breakdown before budgeting around that number. Ask how many employees qualify, whether fees are included, and what would happen if fewer people sign up.
Compare your costs on one page
- Write down your current employer payroll taxes and benefits costs.
- Ask for projected employer taxes with the program and a list of any new fees and costs.
- Compare the totals using the same dates and number of workers. Ask your payroll team to check the taxable wages used in the estimate.
Sources
Want to review this for your team?
Share your team size and contact details if you’d like to talk through supplemental benefits and potential savings.
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