 |
Here's an example of how a typical employee's
take-home pay will increase as a result of participating in an FSA.
An employee makes $2,000 each month and decides to
participate in her employer's FSA Plan. She pays her insurance
premiums and health and daycare expenses through the FSA with
tax-free dollars. And, she is able to save $100 each month!
|
Your
Paycheck Without A Plan |
| Salary |
$ |
2,000 |
 |
| FICA, federal, state taxes |
- |
500 |
| Insurance premium |
- |
100 |
| Health & daycare
expenses |
- |
300 |
| Net Pay a Plan |
$ |
1,100 |
|
Your
Paycheck With A Plan |
| Salary |
$ |
2,000 |
|
| Insurance premium* |
- |
100 |
| Health & daycare
expenses* |
- |
300 |
| Adjusted earnings |
|
1,600 |
| FICA, federal, state taxes |
- |
400 |
| Net Pay
a Plan |
$ |
1,200 |
*Paid through the FSA
plan.
|
