Special Pay Plans: The smart way to reduce taxes and payroll costs


These IRS approved plans save the public sector millions in payroll taxes every year

The IRS currently allows organizations like yours to place employees’ unused vacation, sick, and holiday leave pay into a tax-deferred 401(a), 403(b), or 457(b) retirement plan, which permanently saves both them and your organization up to 7.65% in FICA taxes

Organization Benefits

  • Reinvest the money into your organization
  • Help attract and retain talent
  • Improve its financial health (increase your credit score and balance sheet)
  • Turnkey, IRS compliant plan designs, administration, compliance, and education

Employee Benefits

  • Tax-deferred growth on their money
  • Use withdrawals any way they want
  • Withdraw money when they’re typically in a lower tax bracket

Discover the Tax Savings Your Organization Can Realize

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“Working with a Special Pay Plan has been very helpful to our district and to [our] employees. Annually, we save approximately $2 million in taxes, and our employees get the benefit of being able to defer their taxes and then possibly leave their money where it is and earn interest.”  

Tracy Schatzberg, Ed. D., SHRM-CP

General Manager, Employee Benefits & Insurance
Hillsborough County Public Schools

Employer Tax Savings Calculator

All projections assume 6.2% in Social Security Taxes and 1.45% in Medicare Taxes.
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Annual Turnover Rate (%)
Average Payout Per Employee ($)
All projections are hypothetical. Your individual situation may vary