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