Page 14 - CHI 2022 Benefits Guide
P. 14
Flexible Spending Accounts (FSAs)
How Pre-Tax Deductions Work You will receive a debit card when you participate
Example: an employee makes $2,000 each month in the healthcare lexible spending account. This
and decides to participate in the lexible spending card gives you easy access to your tax-advantaged
and dependent care plans. As a result, her insurance account by swiping the card at the point of sale. It
premiums, health, and daycare expenses are paid can be used at any qualiied provider that accepts
with tax-free dollars, giving her an additional $100 MasterCard and the funds are automatically
each month in her take-home pay. transferred.
Without the Plan Healthcare FSA
Gross Earnings $2,000
FICA, Federal, State Taxes $500 You may contribute up to $2,750 towards your
Insurance Premium $100 healthcare FSA in 2022. Your contribution amount
Health and Daycare Expenses $300 will be deducted on pre-tax basis each pay period.
Net Earnings $1,100 Some examples of eligible expenses include the
With the Plan
Gross Earnings $2,000 following:
Insurance Premium $100
Health and Daycare Expenses $300 z Deductibles for medical, dental, or vision
Adjusted Gross Earnings $1,600 z Coinsurance/copayments
FICA, Federal, State Taxes $400
Net Earnings $1,200 z Dental services, including orthodontia
z Laser eye surgery
Flexible spending accounts are tax favored accounts z
which allow you to pay for eligible healthcare and Smoking cessation products
dependent care expenses with pre-tax dollars. The z Over-the-counter drugs
dependent care FSA is available to you regardless For general guidelines about expenses eligible under
of medical plan enrollment. In addition, please note the healthcare FSA, refer to IRS tax publication 502
that you cannot participate in the healthcare FSA available online.
if you or your spouse are contributing to a health
savings account (HSA). If you have leftover healthcare FSA money at the end
of the year, you can spend it on eligible items found
You must make a new election each calendar year at www.fsastore.com.
if you wish to participate in either or both lexible
spending accounts. It is important to be cautious
with your election as any unused funds are not
rolled over and are forfeited at the end of the plan
year.
14
How Pre-Tax Deductions Work You will receive a debit card when you participate
Example: an employee makes $2,000 each month in the healthcare lexible spending account. This
and decides to participate in the lexible spending card gives you easy access to your tax-advantaged
and dependent care plans. As a result, her insurance account by swiping the card at the point of sale. It
premiums, health, and daycare expenses are paid can be used at any qualiied provider that accepts
with tax-free dollars, giving her an additional $100 MasterCard and the funds are automatically
each month in her take-home pay. transferred.
Without the Plan Healthcare FSA
Gross Earnings $2,000
FICA, Federal, State Taxes $500 You may contribute up to $2,750 towards your
Insurance Premium $100 healthcare FSA in 2022. Your contribution amount
Health and Daycare Expenses $300 will be deducted on pre-tax basis each pay period.
Net Earnings $1,100 Some examples of eligible expenses include the
With the Plan
Gross Earnings $2,000 following:
Insurance Premium $100
Health and Daycare Expenses $300 z Deductibles for medical, dental, or vision
Adjusted Gross Earnings $1,600 z Coinsurance/copayments
FICA, Federal, State Taxes $400
Net Earnings $1,200 z Dental services, including orthodontia
z Laser eye surgery
Flexible spending accounts are tax favored accounts z
which allow you to pay for eligible healthcare and Smoking cessation products
dependent care expenses with pre-tax dollars. The z Over-the-counter drugs
dependent care FSA is available to you regardless For general guidelines about expenses eligible under
of medical plan enrollment. In addition, please note the healthcare FSA, refer to IRS tax publication 502
that you cannot participate in the healthcare FSA available online.
if you or your spouse are contributing to a health
savings account (HSA). If you have leftover healthcare FSA money at the end
of the year, you can spend it on eligible items found
You must make a new election each calendar year at www.fsastore.com.
if you wish to participate in either or both lexible
spending accounts. It is important to be cautious
with your election as any unused funds are not
rolled over and are forfeited at the end of the plan
year.
14
