 Understanding Flexible Spending Sometimes referred to as a cafeteria plan, flex plan, or a Section 125 plan, a Flexible Spending Account (FSA) lets employees set aside a certain amount of each paycheck into an account--before paying income taxes. What if we told you Benefit Advantage could save you hundreds, even thousands of dollars every year by simply enrolling in a Flexible Spending Plan? It seems too good to be true, but it is. Flexible spending creates more spendable dollars from the same paycheck while you pay less in taxes.
| Employee Enrollment Video |
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Without FSA Plan |
With FSA Plan |
| Monthly Pay |
$3,000 |
$3,000 |
Pre-Tax Deductions |
| Insurance Premiums |
$0 |
$60 |
| Medical Expenses |
$0 |
$50 |
| Dependent Care Expenses |
$0 |
$350 |
| Taxable Income |
$3,000 |
$2,540 |
| Tax |
$829 |
$702 |
| Net Pay |
$2,171 |
$1,838 |
After Tax Deductions |
| Insurance Premiums |
$60 |
$0 |
| Medical Expenses |
$50 |
$0 |
| Dependent Care Expenses |
$350 |
$0 |
| Spendable Income |
$1,711 |
$1,838 |
| Monthly Increase in Spendable Income |
$0 |
$127 |
| Annual Increase in Spendable Income |
$0 |
$1,524 |
This employee saved $1524 last year through their Flexible Spending Cafeteria Plan. Calculate your annual savings with the Savings Calculator. If you currently participate in premium sharing in Health Insurance, Dental Insurance, Vision Insurance or Group Term Life Insurance, you should take advantage of one or all of the following pre-tax benefit plans: - Premium Only Plan - Eliminates FICA, and in most states Federal and State income taxes, on the employee's share of most group insurance premiums.
- Health Care Flexible Spending Accounts - Eliminates FICA, and in most states Federal and State income taxes, on unreimbursed employee health care expenses like deductibles, co payments, vision care, dental care and many other expenses.
- Dependent Care Flexible Spending Accounts - Eliminates FICA, and in most states Federal and State income taxes, on up to $5,000 (or $2,500 if filing separately) of employment related day care expenses annually.
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