Our Products › Tax Savings Example
You save on federal and state income taxes and your share of FICA, calculated on reduced salary. With Flexible Spending, you save $100 per month or $1,200 a year in the example below.
Example: Employee (married, two deductions)
| Without Flexible Spending |
With Flexible Spending |
||
|---|---|---|---|
| Gross Salary | $1,800 | $1,800 | |
| Pretax Deductions | |||
| Insurance Premiums | $0 | -$100 | |
| Medical Expenses | $0 | -$80 | |
| Dependent Care | $0 | -$200 | |
| Taxable Salary | $1,800 | $1,420 | |
| Less Taxes | -$500 | -$400 | |
| Take-home Pay | $1,300 | $1,020 | |
| After-tax Expenses: | |||
| Insurance Premium dues | -$100 | -$0 | |
| Medical Expenses | -$80 | -$0 | |
| Dependent Care | -$200 | -$0 | |
| Net Income | $920 | $1,020 | |
