Page 11 - 2022 DPR Construction Benefit Guide_Administrative Employees

How You Can Save on Taxes With Flexible Spending Accounts

Here’s an example of how much you can save when you use an FSA to pay for your predictable health care and day care
expenses.

HEALTH CARE FSA DAY CARE FSA

WITHOUT ACCOUNT WITH ACCOUNT WITHOUT ACCOUNT WITH ACCOUNT

Your Taxable $50,000 $50,000 $50,000 $50,000
Annual Income

Account Deposit N/A $2,500 N/A $5,000
(Before Taxes)

Taxable Wages $50,000 $47,500 $50,000 $45,000

Federal & Social $14,325 $13,609 $14,325 $12,894
Security Taxes

Expense $2,500 N/A $5,000 N/A
(After Taxes)

Take Home
(Net) $33,175 $33,891 $30,675 $32,106

Annual Tax Savings $0 $716 $0 $1,431

It’s Easy to Use These Accounts Important Notes!

First, you contribute to the account(s) with pre-tax dollars There is a “use it or lose it” rule imposed by
deducted from your paycheck. That means no taxes the IRS. In other words, if you do not spend
(federal, state or Social Security) will be withheld from any all the money in your FSA by the deadline, any
of those dollars. unused dollars in your account(s) after the
deadline will be forfeited, with the exception
Then, you pay for certain eligible expenses out of your pocket of the carryover option on the Health Care
as usual. You may use your debit card or submit a claim (along FSA and Limited Purpose FSA.
with the appropriate documentation) to be reimbursed for
those expenses from the dollars in your account.

Register your account at the Navia benefits website. When If you are a participant in a Health
registering in the Navia website, please note that the requested Savings Account (HSA), you are eligible
employer code is DPR. to enroll in the Limited Purpose FSA.

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