Page 13 - 2016 ACProducts Non-Union
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ACProducts
Example of How the Plan Works
An employee makes $3,000 each month and decides to participate in
the FSA. As a result their insurance premiums, healthcare, and daycare
expenses are paid with tax-free dollars. Before 2016, the employee
determines how much he wants to reduce his pay to fund the lexible
spending account(s).
Without FSA Plan With FSA Plan
Gross monthly earnings $3,000 $3,000
Health and day care expenses -$500 -$500
Adjusted earnings after FSA withholding N/A $2,500
FICA, federal, state taxes -$660 -$525
Net earnings $1,840 $1,975
With the FSA, this family was able to increase take-home pay by $135 per
month or $1,620 annually. They were also able to use the money in the FSA
accounts to pay for health and dependent care expenses.
Flexible Spending Accounts Calculator
The table below helps you determine your annual election based on the
amount you want to set aside each pay period. Determine the amount
you wish to set aside for each pay period, then multiply the number of
pay periods by the amount you elect to set aside. The result is the annual
election you want to set aside in your FSA. Remember there are two FSAs
so if you wish to put money in both accounts, you will need to determine
the annual election for each FSA.
Deduction # of Pay Periods Annual Election
Healthcare FSA (1) $__________ x A =
Dependent care FSA (2) $__________ x A =
(1) $2,550 annual maximum
(2) $5,000 annual maximum
Participation in the 2016 lexible spending account program requires
that you complete your FSA enrollment specifying the amount you want
deducted from your paycheck on a periodic basis. Remember, “over-the-
counter” medications are no longer eligible for reimbursement through the
Healthcare FSA without a prescription from your physician.
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Example of How the Plan Works
An employee makes $3,000 each month and decides to participate in
the FSA. As a result their insurance premiums, healthcare, and daycare
expenses are paid with tax-free dollars. Before 2016, the employee
determines how much he wants to reduce his pay to fund the lexible
spending account(s).
Without FSA Plan With FSA Plan
Gross monthly earnings $3,000 $3,000
Health and day care expenses -$500 -$500
Adjusted earnings after FSA withholding N/A $2,500
FICA, federal, state taxes -$660 -$525
Net earnings $1,840 $1,975
With the FSA, this family was able to increase take-home pay by $135 per
month or $1,620 annually. They were also able to use the money in the FSA
accounts to pay for health and dependent care expenses.
Flexible Spending Accounts Calculator
The table below helps you determine your annual election based on the
amount you want to set aside each pay period. Determine the amount
you wish to set aside for each pay period, then multiply the number of
pay periods by the amount you elect to set aside. The result is the annual
election you want to set aside in your FSA. Remember there are two FSAs
so if you wish to put money in both accounts, you will need to determine
the annual election for each FSA.
Deduction # of Pay Periods Annual Election
Healthcare FSA (1) $__________ x A =
Dependent care FSA (2) $__________ x A =
(1) $2,550 annual maximum
(2) $5,000 annual maximum
Participation in the 2016 lexible spending account program requires
that you complete your FSA enrollment specifying the amount you want
deducted from your paycheck on a periodic basis. Remember, “over-the-
counter” medications are no longer eligible for reimbursement through the
Healthcare FSA without a prescription from your physician.
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