|
Without POP |
With POP |
|
| Annual Payroll.................................................... | $3,000,000 | $3,000,000 |
| Annual pre-tax payroll deduction*......................... | $ - | $(240,000) |
| Taxable payroll................................................... | $3,000,000 | $2,760,000 |
| Annual Social Security tax**................................ | $ 229,500 | $ 210,114 |
| Total annual employer tax savings.................. | $ 0 | $ 18,360 |
| Without POP | With POP | |
| Annual Salary................................................ | $ 30,000 | $ 30,000 |
| Annual pre-tax contributions*.......................... | $ - | $ (2400) |
| Taxable Income............................................. | $ 30,000 | $ 27,600 |
| Estimated taxes (30.65%).............................. | $ (9,195) | $ (8,460) |
| Annual after-tax contributions.......................... | $ (2,400) | $ - |
| Net take-home pay......................................... | $ 18,000 | $ 19,140 |
| Increase in take-home pay............................ | $ 735 | |
| Total annual tax savings for 100 employees.. | $ 73,500 |
* Based on a monthly premium of $200
** Based on an average 20% Federal, 7.65% FICA and 3% State
Note: Social Security Benefits could be affected
Total Employer & Employee Annual Savings............$ 91,860
