Cost Saving Plans

Employer Benefits

Payroll Taxes

Immediate payroll savings. Employer does not pay FICA or FUTA taxes on the amount of employees' salary reductions.

Savings

The savings created for the employer from reduced payroll taxes (FICA & FUTA) can be substantial. These funds can be used for a variety of additional benefits.

Greater Cost Containment Potential

Employees are willing to accept a larger deductible, coinsurance, or contributions on their medical plan when their share is paid with pretax dollars.

Premium

Lays the groundwork for future shifting of a premium increase to employees.

Costs

Requires no or minimal investment to implement.

Additional Benefits

Allow employer to offer additional benefits to employees and their families at no direct cost to the employer.

Price

Puts realistic price tags on benefit options so employees are more likely to recognize and appreciate the value of their benefits.

Employee Benefits

Added Benefits, Lower Cost

Employees can enjoy the advantage of using tax savings to provide additional benefits for themselves and their families and possibly increase their take-home pay.

Reduces Federal Income Tax

The employees do not pay federal tax on their insurance premiums.

Reduces Social Security Tax

The employees do not pay Social Security tax on their insurance premiums.