Flexible Benefits Tax

Savings Plan

I.R.C. Section 125-D

Employee Payroll Example

Full Plan

Current

Proposed

Gross Pay

$2000

$2000

Medical Insurance

$0

$100

Medical Expenses

$0

$100

Dependent Care Expenses

$0

$200

Taxable Income

$2000

$1600

Taxes (30%) Federal, State, FICA

$600

$480

Net Income

$1400

$1120

Post Tax Medical Insurance

$100

$0

Post Tax Medical Expenses

$100

$0

Post Tax Dependent Care Expenses

$200

$0

Net Spendable Income

$1000

$1120

Increase in Monthly Spendable Income

N/A

$120

Increase in Annual Spendable Income

N/A

$1440