The gross to net employer math
The $91.80 is the gross monthly reduction in employer payroll taxes. After the $44 administration cost, the employer retains $47.80 in net monthly savings.
Where does the $91.80 come from?
For wages subject to both employer Social Security and Medicare taxes, the calculation applies the 7.65% employer rate to a $1,200 monthly pre tax amount:
The 7.65% rate combines the 6.2% employer Social Security rate and 1.45% employer Medicare rate. Social Security applies only up to the annual wage base, while Medicare has no wage-base limit. Payroll review confirms how those taxes apply across the employer's actual workforce before implementation.
Federal payroll tax rate source: IRS Publication 15, Employer's Tax Guide. The IRS source supports the Social Security and Medicare payroll tax rates used here; it is not an endorsement of any particular program.
How should an employer use headcount?
Headcount is the fastest way to understand scale. A 500 employee workforce produces a preliminary opportunity of $286,800 when the $573.60 annual figure is applied across that workforce. The implemented employer total reflects the employees who actually participate.
Headcount provides a quick way to see whether the opportunity is large enough to deserve a closer look.
Why net savings matter
A proposal can sound larger if it highlights only the gross payroll tax reduction. Compare the net employer result after the program cost, not only the gross payroll tax reduction. For this structure, that is $47.80 per participating employee per month.