01 / PEO Savings

The FICA savings
hiding in plain
sight.

Every dollar an employee routes through an HSA, FSA, or Commuter account is a dollar the PEO doesn't pay 7.65% FICA on. Model your book in seconds.

How the math works →
01
7.65%
Employer FICA rate
02
4
Account types
03
<1m
Setup time
Calculator

Model your PEO's pre-tax savings

Adjust your worksite headcount, expected participation, and average contributions. Results update live.

Step 1

Total worksite employees

Employees
30,000
Step 2 & 3 · Accounts

Health Savings Account (HSA)

Employee + employer pre-tax contributions paired with an HDHP.

FICA savings
$1.47M
20%
6,000 participants
$
2026 IRS limit: $4,300 individual / $8,550 family

Health Care FSA

Pre-tax election for qualified medical expenses.

FICA savings
$1.1M
20%
6,000 participants
$
2026 IRS limit: $3,400

Dependent Care FSA

Pre-tax election for childcare and dependent care expenses.

FICA savings
$918K
10%
3,000 participants
$
2026 IRS limit: $5,000

Commuter Benefits

Pre-tax transit and parking — up to $340/mo each in 2026.

FICA savings
$275.4K
5%
1,500 participants
$
2026 IRS limit: $340/mo transit + $340/mo parking ($8,160/yr max)
Total Annual PEO Savings
$3,763,800
in employer FICA taxes avoided every year
Pre-tax dollars
$49.2M
Enrolled accounts
16,500
Savings by account
HSA$1,468,800
Health Care FSA$1,101,600
Dependent Care FSA$918,000
Commuter$275,400
Bonus: employees save too

Your worksite employees keep an additional $3,763,800 in FICA + income taxes annually — a meaningful retention and recruitment lever.

How it works

The 7.65% mechanic, in plain English

FICA is the employer's required match on Social Security and Medicare. Pre-tax benefit accounts shrink the wages it applies to.

Step 1

Employee elects pre-tax

Worksite employees fund HSAs, FSAs, Dependent Care, or Commuter accounts from gross pay.

Step 2

Taxable wages drop

Those contributions are excluded from FICA wages — for both the employee and the employer.

Step 3

PEO skips the 7.65% match

Every pre-tax dollar saves 6.2¢ Social Security + 1.45¢ Medicare. It compounds fast across thousands of employees.

$1
pre-tax contribution
Employer saves
7.65¢

Across 30,000 employees electing pre-tax benefits, that's millions in savings dropped to the PEO's bottom line.