Page 24 - 2015 CBRY Enrollment Guide
P. 24
2015 Beneit Guide
Flexible
Spending Health Care and Dependent Care Flexible
Accounts Spending Accounts
By contributing to the Flexible Spending Accounts
flexible spending accounts Flexible Spending Accounts (FSAs) help you stretch your budget for
you reduce your taxable
income and lower you health care and dependent care expenses by letting you pay for these
annual taxes. expenses with tax-free dollars. Here is how: the amount you elect for
Please Note the FSA is deducted from your paycheck before federal and state taxes
are withheld. After you have an eligible expense, you are reimbursed
The FSA is a “use it or lose it” beneit. from the account and your money is not taxed. Not only are you
This means that if you do not use
the funds you have elected you will reducing the taxable income by using pre-tax dollars, you have money
lose them at the end of the year. As set aside when these eligible expenses arise.
a precaution, enroll conservatively. All
eligible expenses for 2015 must be Sample FSA Calculations
submitted to ADP by March 31, 2016.
Without Healthcare FSA
Is the FSA Right for You? Gross (taxable) Pay $36,000
Taxes @ 24.5% -$8,820
Find out how much you can save
in an FSA by logging into Employee Net Take Home $27,180
Self Service (https://portal.adp.com) Out-of-pocket Health Care Costs -$2,400
and visit the FSA section. Use the Spendable Income After Health Care Costs $24,780
interactive tool to quickly ind out how
much money you can save, determine With Healthcare FSA
how much to contribute, and see the Gross Pay $36,000
examples of how others save with an Pre-Tax Health Care Deduction -$2,400
FSA. Taxable Pay $33,600
Taxes @ 23.8% -$7,997
Spendable Income After Health Care Costs $25,603
Additional Income With Health Care FSA $823
24
Flexible
Spending Health Care and Dependent Care Flexible
Accounts Spending Accounts
By contributing to the Flexible Spending Accounts
flexible spending accounts Flexible Spending Accounts (FSAs) help you stretch your budget for
you reduce your taxable
income and lower you health care and dependent care expenses by letting you pay for these
annual taxes. expenses with tax-free dollars. Here is how: the amount you elect for
Please Note the FSA is deducted from your paycheck before federal and state taxes
are withheld. After you have an eligible expense, you are reimbursed
The FSA is a “use it or lose it” beneit. from the account and your money is not taxed. Not only are you
This means that if you do not use
the funds you have elected you will reducing the taxable income by using pre-tax dollars, you have money
lose them at the end of the year. As set aside when these eligible expenses arise.
a precaution, enroll conservatively. All
eligible expenses for 2015 must be Sample FSA Calculations
submitted to ADP by March 31, 2016.
Without Healthcare FSA
Is the FSA Right for You? Gross (taxable) Pay $36,000
Taxes @ 24.5% -$8,820
Find out how much you can save
in an FSA by logging into Employee Net Take Home $27,180
Self Service (https://portal.adp.com) Out-of-pocket Health Care Costs -$2,400
and visit the FSA section. Use the Spendable Income After Health Care Costs $24,780
interactive tool to quickly ind out how
much money you can save, determine With Healthcare FSA
how much to contribute, and see the Gross Pay $36,000
examples of how others save with an Pre-Tax Health Care Deduction -$2,400
FSA. Taxable Pay $33,600
Taxes @ 23.8% -$7,997
Spendable Income After Health Care Costs $25,603
Additional Income With Health Care FSA $823
24