Illustration only. Every number below is an assumption unless it's footnoted to a source. These aren't quotes, projections for your company, or promises. Real results depend on your census, plan design, fees, claims and tax treatment.
Employer: the FICA arithmetic Illustration only
| Enrolled employees (assumption) | 150 |
| Monthly pre-tax premium (lowest tier on one client's form) | $600 |
| Annual premium per employee | $7,200 |
| Employer FICA rate | 7.65% |
| Employer FICA not paid, per enrolled employee | $550.80 |
| Total, before program fees | ≈ $82,620 / year |
Formula and inputs:[1, 2, 3, 4] Subtract the program fees in your Financial Impact Statement.[5] All of it depends on benefit payments not being treated as wages.[6, 7]
Sensitivity: a 500-employee company Illustration only
| Share who qualify (Elysian case data ranged ~60–80%; assume 60%) | 300 employees |
| At a $600 monthly premium | ≈ $165,240 gross / year |
| At a $1,200 monthly premium | ≈ $330,480 gross / year |
Qualification range:[8] Premium tiers:[2]
Employee: one month's pay stub Illustration only
| Before | With the plan | |
|---|---|---|
| Gross pay | $3,500.00 | $3,500.00 |
| Pre-tax premium | none | − $600.00 |
| Taxable pay | $3,500.00 | $2,900.00 |
| Taxes at an assumed 19.65% | − $687.75 | − $569.85 |
| Claim payment received (assumed) | none | + $622.00 |
| Take-home | $2,812.25 | $2,952.25 |
That's about $140 more that month, in line with Elysian's reported average, only because the plan paid a claim close to the premium. It assumes a 12% federal bracket + 7.65% FICA + no state income tax, and that claim payments aren't taxed.[9, 10, 11]
The month with no claim Illustration only
Same employee, no claim paid: take-home falls by about $482.10 (the $600 premium minus $117.90 in taxes saved).[9] That's why the claim trigger matters so much, and why we've asked for it in writing.[12]
Sources & footnotes
- Analysis Employer FICA savings — how to estimate. Elysian benefits proposal (redacted client, provided by Elysian). Proof library P-41
- Verified Step 1 — pre-tax premium through a Section 125 cafeteria plan. IRS Chief Counsel Advice 202323006; Elysian enrollment authorization (JobsRUs). Proof library P-30
- Verified Employer FICA is 7.65% for most hourly workers. Social Security Administration — maximum taxable earnings; IRS Tax Topic 751 — Social Security and Medicare withholding rates. Proof library P-40
- Analysis The owner's 'raise' (example). Our analysis of P-30, P-40 and P-41 (150 enrolled is an illustrative assumption). Proof library P-104
- Pending NDA doc Program fees. Elysian Dealer FAQ. Proof library P-34
- Verified CCA 202323006 — the key IRS memo. IRS CCA 202323006. Proof library P-58
- Elysian-stated Step 5 — Elysian's counsel: claim payments are not wages. Holland & Knight memorandum to Elysian Healthcare (confidential; available on request, subject to Elysian's permission). Proof library P-33
- Elysian-stated Not everyone qualifies. Elysian PEO implementation guide (provided by Elysian); Elysian benefits proposal (provided by Elysian); Elysian client flyer (JobsRUs, 2025). Proof library P-43
- Analysis The take-home formula. Our analysis of P-30 and P-37. Proof library P-38
- Elysian-stated Average take-home pay increase. Elysian PEO implementation guide (provided by Elysian). Proof library P-37
- Analysis Paycheck before/after (example). Our analysis of P-30, P-37 and P-38 ($3,500 gross is an illustrative assumption). Proof library P-87
- Pending NDA doc Step 3 — what triggers a claim payment. Holland & Knight memorandum to Elysian Healthcare (confidential; available on request, subject to Elysian's permission); Evidence request E-1 (written claim-trigger definition). Proof library P-31