Estimate Your Payroll-Tax Savings
The Wellness Program is a Section 125 Cafeteria Plan. Pre-tax payroll deductions lower your taxable payroll, so your employer FICA cost may fall. Start with the estimate below, then we prepare a proposal from your actual payroll census.
Estimate Preview
Example only. $680 per W-2 employee per year is a typical projection, not a quote or a guarantee. Your proposal is computed from your actual census.
Savings Estimator
Enter your W-2 headcount to see a typical projection of employer payroll-tax savings. It is an estimate, not a quote. Your proposal is computed from your actual payroll census.
Company Information
Enter your headcount to see a typical projection
How this estimate is built
- Employees take a pre-tax payroll deduction under Section 125 of the Internal Revenue Code.
- That deduction lowers taxable payroll, so the employer's matching FICA cost is calculated on a smaller base.
- The difference is the projected employer saving. It is shown before program fees.
- Eligible employees are full-time (30 hours a week on the ACA basis) and already hold major-medical coverage from any source.
What this figure does not include
- Program fees, which are set per client.
- Variation from participation, wages, and the Social Security wage base.
- Your employees' own take-home change, which is shown separately in your proposal.
Estimated Annual Employer Savings
A typical projection based on $680 per W-2 employee per year — not a quote or a guarantee; your proposal is computed from your actual census.
Where the Savings Come From
The projection has one source: a pre-tax deduction under Section 125 lowers your taxable payroll, so your employer payroll-tax cost is calculated on a smaller base. Here is the mechanism, and what your proposal contains.
How the Projection Is Built
From pre-tax deduction to net employer saving
Pre-tax payroll deduction
The plan operates under Section 125 of the Internal Revenue Code. A participating employee takes a pre-tax deduction from each pay run.
Taxable payroll falls
Because the deduction is pre-tax, the wages your payroll taxes are calculated on are lower for each participating employee.
Employer FICA is calculated on the smaller base
The employer matching FICA rate is 7.65% — 6.2% Social Security, subject to the annual Social Security wage base, plus 1.45% Medicare. The difference is your projected saving.
Program fees are applied
Program fees are set per client and are subtracted from the projected saving. Every figure on this page is shown before fees, so your proposal shows the net.
The program runs alongside your existing benefits. It does not change your current insurance, your broker, or an existing Section 125 plan. It is not health insurance and it does not replace major medical cover.
What Your Proposal Contains
Prepared from your payroll census, at no cost and with no obligation
Your qualified W-2 count
Taken from your own payroll census, not from an assumed headcount. Eligible employees are full-time on the ACA 30-hour basis and already hold major-medical coverage from any source.
Estimated employer savings
Your projected employer payroll-tax saving, shown before program fees, with the fee applied so you can see the net.
Estimated employee take-home change
Shown separately from the employer figure. Individual results vary with wages, state, and each employee’s tax situation.
Per-employee pay comparison
A line-by-line comparison of pay before and after the plan, for the employees on your census.
Estimated and confirmed figures, labelled
Figures start as estimates. They are replaced with confirmed figures as your payroll data and plan documents are completed.
From Proposal to First Payroll Run
Implementation typically takes 30–45 days and is guided step by step in your portal.
Introduction
Proposal
Implementation
Go-live
The plan is administered with US HealthCenter, our administration partner. US Health communicates with your employees about their benefits and provides their support. Enrollment is handled during implementation.
Worked Examples
Three scenarios at different headcounts, using the same $680 per W-2 employee per year projection basis. These are illustrations of the arithmetic, not client results.
Illustrative example A
Not a client
How the Figure Is Built
What It Includes
- Employer payroll-tax (FICA) projection only
- All 50 assumed eligible and participating
- Figures before program fees
What It Leaves Out
- Program fees, set per client
- Employees who are not eligible or do not participate
- Wage and Social Security wage-base effects
Illustrative example B
Not a client
How the Figure Is Built
What It Includes
- Employer payroll-tax (FICA) projection only
- All 150 assumed eligible and participating
- Figures before program fees
What It Leaves Out
- Program fees, set per client
- Employees who are not eligible or do not participate
- Wage and Social Security wage-base effects
Illustrative example C
Not a client
How the Figure Is Built
What It Includes
- Employer payroll-tax (FICA) projection only
- All 500 assumed eligible and participating
- Figures before program fees
What It Leaves Out
- Program fees, set per client
- Employees who are not eligible or do not participate
- Wage and Social Security wage-base effects
How to Read These Examples
Four things to keep in mind before you compare a scenario above to your own business.
Not client results
Each scenario is arithmetic on a published projection basis. None of them describes a real employer, and we publish no client outcomes.
One basis, applied evenly
Every figure is headcount multiplied by $680 a year. There is no industry adjustment, because we hold no industry measurements.
Eligibility narrows the count
Only full-time employees on the ACA 30-hour basis who already hold major-medical coverage are eligible. Your qualified count is usually lower than your total headcount.
Your census replaces all of it
Your proposal is computed from your own payroll data, and estimated figures are replaced with confirmed figures during implementation.
Estimates are projections based on program parameters, not measurements of client results. Actual savings vary and are not guaranteed.
What to Expect Over Time
Savings do not arrive as a lump sum. They appear on each payroll run once the plan is live, and your portal shows the actual figures next to the estimates from your proposal.
Proposal to Payroll
The sequence, from your first proposal to an ongoing plan
We compute a proposal from your actual census: your qualified W-2 count, an estimated employer payroll-tax saving, and an estimated employee take-home change. You accept it in your portal, or you do not. There is no obligation.
Plan documents, the MSA and ACH setup, a meeting with US Health, a dry run, and employee training. Each step is listed in your portal, so you can see what is done and what is next.
The pre-tax deduction begins. Your employer payroll-tax saving appears on that payroll run, and on every run after it, rather than as a lump sum.
Your portal shows the actual figures for each run, before program fees, next to the estimates from your proposal. Estimated figures are replaced by confirmed ones as they land.
We publish no cumulative multi-year savings figure. The only figure we publish is the per-employee projection, and it is an estimate.
What You See in Your Portal
Once the plan is live, measured against your own payroll
Actual savings per payroll run
Your employer payroll-tax saving for each run, shown before program fees.
Estimated against confirmed
Every figure is labelled, so you can always tell a projection from a measured amount.
Employee roster
Who is enrolled, and who is eligible but not yet enrolled.
Payroll history
The payroll data behind each run, so the arithmetic can be checked against your own records.
Financials and invoices
Your monthly invoice and the fees applied, so you can see the net rather than the gross.
What Affects Your Actual Savings
A projection is arithmetic on assumptions. These four things decide how close it lands to your real result.
Participation
Only participating employees generate a saving.
Why it matters
Your proposal projects a qualified count from your census. The figure moves with how many of those employees actually take part.
Wages and the wage base
Social Security tax stops at the annual wage base.
Why it matters
For an employee already above the wage base, the Social Security part of the saving does not apply, so a flat per-employee figure overstates their contribution.
Program fees
Fees are set per client and are not published.
Why it matters
Every figure on this page is shown before fees. Your proposal shows the fee and the net.
Eligibility
Full-time on the ACA 30-hour basis, with existing major-medical coverage.
Why it matters
Your qualified count is usually lower than your total headcount, which is why a headcount estimate is a starting point rather than an answer.
Estimates are projections based on program parameters, not measurements of client results. Actual savings vary and are not guaranteed.
Ready to Start Saving?
The figures above are estimates. The next step is a proposal computed from your own payroll census, so you can see real numbers for your business before you decide anything.
Get Your Proposal
Book a call, share your payroll census, and we prepare a proposal with your qualified W-2 count and your estimated figures. It is free and there is no obligation.
Talk to Us
Ask us how the plan works alongside your existing benefits, or what your census needs to contain.
What You Get
We do not guarantee a savings figure, and we will not quote you one from a headcount alone. What we give you is a proposal built from your own payroll data, with every figure labelled for what it is.
Questions About the Estimate?
Call or email us and we will answer. We reply within one business day.
* Estimates are projections based on program parameters, not measurements of client results. Actual savings vary and are not guaranteed.