Employer Tax-Savings Example

Example of Employer Savings
XYZ Company has
10 Employees

Without an
FSA Plan

With an
FSA Plan
Annual payroll $ 300,000 $ 300,000
Employee-Paid
Premiums		   0   -24,000
Unreimbursed
Medical Expenses		   0   -3,000
Dependent
Day care Expenses		   0   -10,000
Taxable Payroll $ 300,000 $ 263,000
FICA Tax (7.65%) $ 22,950 $ 20,120

Savings

0

$

2,830

Employee-Paid Premiums: Based on insurance premiums averaging $200 per month per employee.

Unreimbursed Medical Expenses: Based on four employees contributing an average of $62.50 per month.

Dependent Day care Expenses: Based on two employees contributing an average of $417.00 per month.

Note: Actual savings may vary depending upon specific tax situation. Social security benefits could be affected.