How much savings are there using pre-tax dollars?

Payroll and income taxes account for up to 40% of income depending on what state you live in.

If you chose, for example, to give an employee extra cash in their paycheck (post-tax contribution) to serve as their health benefit, the actual amount that would hit the employee’s bank account would be a lot less (about 40%). That’s a benefit that doesn't feel much like a benefit.

By giving pre-tax dollars for employees' health insurance premiums, as you would using StretchDollar’s pre-tax fixed benefit (called an ICHRA), you can stretch your budget even further while also giving more value to your employees.