Updated April 2026 · Florida Plan Finder · Licensed Florida Health Insurance Producer

How to Calculate Cost Per Employee for Health Insurance in Florida

The headline premium on a Florida small group health plan quote is not the true cost per employee. The actual figure depends on the employer contribution percentage, FICA savings from pre-tax payroll, federal income tax deduction value, and admin/broker overhead. A complete cost-per-employee model lets a business compare plan options on equal footing and forecast the budget impact of an additional hire. This guide walks through the formula and provides examples for 5, 10, and 25 FTE Florida businesses.

The Cost-Per-Employee Formula

True cost per employee per month =

Employer share of premium ($), PLUS
Admin / broker overhead (typically built into premium so $0 incremental), PLUS
Section 125 plan administration ($1-$5/mo if separate), MINUS
Employer FICA savings on pre-tax employee contributions (7.65% × employee share), MINUS
Federal income tax savings on employer contribution (marginal corporate or pass-through rate × employer share)

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2026 Florida Premium Benchmarks

Coverage Tier	Avg FL Small Group Premium / Month
Employee only	$680 – $890
Employee + spouse	$1,360 – $1,780
Employee + child(ren)	$1,225 – $1,600
Family	$1,900 – $2,490

Premiums vary by carrier (Florida Blue, Aetna, UnitedHealth, Ambetter, Cigna), county rating area, plan metal tier, and average age of the employee group.

Worked Example: 10-Employee Florida Business

Setup: 10 employees, all enrolled in employee-only coverage at $750/month. Employer pays 70%, employee pays 30% via Section 125. Business is an S-corp in 24% effective marginal bracket.

Component	Per Employee / Month	Annual Total (10 EE)
Employer share (70% × $750)	$525	$63,000
Section 125 admin (allocated)	$2	$240
Less: FICA savings on EE share ($225 × 7.65%)	($17.21)	($2,066)
Less: Income tax savings (24% × employer share)	($126)	($15,120)
True net cost per employee per month	$383.79	$46,054

Scaling Across Different Sizes

Group Size	Gross Employer Cost / Mo	Net After Tax Savings
5 employees	$2,625	~$1,919
10 employees	$5,250	~$3,838
25 employees	$13,125	~$9,594

Per-employee unit cost stays roughly constant; total scales linearly. Group rating advantages typically appear above 25 employees.

Get Accurate Florida Cost-Per-Employee Numbers for Your Business

A licensed Florida broker can run carrier quotes and model the true post-tax cost per employee.

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Frequently Asked Questions

Should I include broker commission in cost per employee?

No — broker commission (typically 4-6% of premium) is built into the premium quote you see. Adding it again would double-count. Direct-to-carrier purchase doesn't reduce the premium because carriers price the same to brokered and direct accounts.

How do I model an ICHRA cost-per-employee instead of group?

ICHRA cost = monthly employer reimbursement amount + ICHRA admin fee (~$3-$10/EE/mo). No FICA savings issue (the entire reimbursement is excluded from wages). No federal income tax adjustment beyond the same business-deduction logic.

Does the cost-per-employee formula change if I have part-time employees not on the plan?

No — cost-per-employee is calculated on enrolled employees only. Non-enrolled part-timers don't affect the calculation. They DO affect the FTE count for ACA mandate purposes, which is a separate analysis.

Licensed Florida Health Insurance Producer · NPN #21249133Information on this page is for general reference and is updated regularly. Verify current plan availability and costs at HealthCare.gov before enrolling.