WHY OFFER A SECTION 125
FLEXIBLE SPENDING ACCOUNT PLAN TO EMPLOYEES?
TAX SAVINGS
You will save 7.65% on every dollar your employees redirect
to the Flex plan (up to maximum amount taxed for social security).
| Example
of Employer Savings |
|
|
|
| ABC Company has 10 employees |
Without an FSA |
|
With an FSA |
| 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 |
Your employees will save 7.65% as well as federal and state
taxes on every dollar they redirect to the Flex plan.
CALL TODAY FOR MORE INFORMATION!
or click here to go the Flexible Spending Account website.
|
Does
your Flexible Spending Account plan offer a debit card for payment of claims?