- Number of single employees
- This is the number of single employees you have that would participate in the High Deductible Health Plan (HDHP) and Health Savings Accounts (HSA).
- Number of married employees
- This is the number of married employees you have that would participate in the High Deductible Health Plan (HDHP) and Health Savings Accounts (HSA).
- HDHP Deductible amount
- Enter your deductible for your High Deductible Health Plan (HDHP) single person coverage and for married couple coverage.
- HDHP Premium amount
- This is the monthly premium you pay, per employee, for your High Deductible Health Plan (HDHP). Enter for both single person coverage and for married couple coverage.
- Average employer Contribution
- Enter the percent of the employee's deductible that the employee will be contributing to their Health Savings Account (HSA).
- Average employee contribution
- Enter the percent of the employee's deductible that the employer will be contributing to their Health Savings Account (HSA).
- State unemployment and FUTA tax rate
- Enter your state unemployment tax rate. We assume that the state unemployment tax applies to all income earned and is a flat percentage. State unemployment taxes are not collected on any health insurance premiums paid by the employer or contributions to an HSA as long as those contributions are paid on a pre-income tax basis from an employees paycheck. To allow your employees to make pre-income tax contributions you will need a "salary reduction" plan (also known as a "Section 125 plan" or "cafeteria plan").
This calculator assumes that all employees earn enough that the FUTA tax benefit does not impact our calculation. This would assume that all employees earn more the $7,000 plus the cost of the HDHP premium plus the total contribution to the HSA made by the employee.
- FICA and Medicare tax payments
- FICA and Medicare are note collected on any health insurance premiums paid by the employer or contributions to an HAS as long as those contributions are paid on a pre-income tax bases from an employees paycheck. To allow your employees to make pre-income tax contributions you will need a "salary reduction" plan (also known as a "Section 125 plan" or "cafeteria plan"). This calculator assumes that all employees are under the maximum FICA tax payment limits. For 2007, FICA OASDI would not be collected on income over $97,500 earned by an individual employee. If their income exceeded $97,500 the FICA tax savings would be limited or zero. Since Medicare tax payments have no income limit, this assumption would not affect tax savings Medicare.
- Income tax rate for business expenses
- Enter your marginal income tax rate for your business. You are able to deduct the cost of any health insurance premiums and employer contributions from your business income taxes. We use your marginal income tax rate to calculate the total income tax savings produced by these deductions to your taxable income.
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