FICA savings, realized on the first payroll.
01 · Annual Savings
$1,119+
Per W2 employee · employer FICA
02 · Employer Cost
$0
No out-of-pocket expenses
03 · Prescriptions
1,000+
Preventive care Rx covered
04 · Life Insurance
$150K
Group term · per enrolled
05 · Implementation
2–3 wk
Enrollment to active
Savings, scaled.
Linear scale: more participating W2 employees, proportionally more annual FICA savings — every payroll cycle, every year.
Why these savings exist.
The Section 125 cafeteria plan reduces the employer's FICA-taxable payroll for each participating employee. Since employers pay the matching portion of FICA (6.2% Social Security + 1.45% Medicare = 7.65%), any reduction in taxable payroll directly reduces the employer's tax obligation.
Unlike traditional benefits that require employer funding (health insurance premiums, HRA contributions, 401(k) matches), the PCBP requires no employer contribution. The program is entirely funded through pre-tax payroll restructuring — making the FICA savings pure margin for the employer.
According to the Bureau of Labor Statistics, benefits account for approximately 31% of total employee compensation costs. The PCBP uniquely reverses this equation: instead of adding costs, it generates savings while expanding the benefits package.
Calculate Your Exact Savings
Enter your employee count to see your projected annual FICA tax savings.