 |
|
|
XYZ Company has 10 employees |
Without
POP |
With
POP |
Annual
payroll |
$ |
300,000 |
$ |
300,000 |
Annual pre-tax payroll deduction |
|
0 |
|
-24,000 |
Taxable payroll |
$ |
300,000 |
$ |
276,000 |
Annual social security tax |
$ |
22,950 |
$ |
21,114 |
|
Total annual employer
social security tax savings
|
$
|
0 |
$
|
1,836 |
|
Annual pre-tax payroll deductions are based on insurance premiums
averaging $200 per month per employee. Annual social security tax is based on tax rate of 7.65%.
|
|
 |
|
|
|
