Use this calculator to see the projected annual FICA savings for your client based on their employee count and estimated participation rate.
FICA Savings Calculator
How the math works
The WIMPER program generates approximately $1,120 in employer FICA savings per enrolled W2 employee per year. This comes from the 7.65% employer FICA tax reduction on qualifying Section 125 salary reductions.
These figures are estimates. The default example above (100 benefit-eligible employees at about 80% participation, or 80 enrolled) projects roughly $89,600. Actual savings depend on the employer's specific payroll, salaries, and participation rate, so the number changes as you adjust the inputs. A verified ProForma based on actual payroll data provides exact projections.
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- Legal Information Institute (Cornell Law), 26 U.S. Code § 125 — Cafeteria plans. The statutory basis for pre-tax cafeteria plan elections that reduce FICA wages.
- Legal Information Institute (Cornell Law), 26 U.S. Code § 3121 — Definitions (FICA). The FICA tax (7.65% employer share) and wage base affected by pre-tax salary reductions.
- IRS, About Publication 15-B, Employer’s Tax Guide to Fringe Benefits. Background on cafeteria plans and qualified fringe benefits.
This calculator produces estimates for illustration only and is not tax or legal advice. Results depend on the employer's payroll, salaries, and participation rate and will vary. Consult your own tax, legal, and benefits advisors, and request a verified ProForma, before relying on any figure.