Presentation is loading. Please wait.

Presentation is loading. Please wait.

TaxSaver Flexible Benefits Plan

Similar presentations

Presentation on theme: "TaxSaver Flexible Benefits Plan"— Presentation transcript:

1 TaxSaver Flexible Benefits Plan

2 Tax Saver Two Levels of Participation: Premium Only Spending Accounts

3 Premium Only Allows employees to shelter premiums for:
Health Insurance Group Benefits Life Ins.* Dental Insurance Vision Insurance *Excludes Dependent Premium

4 How do I save? With FSA No FSA Monthly Gross $2,000.00 Pre-Tax Premium
$482.88 Taxable Income $1,517.12 Taxes (21.5%) $326.18 400.00 Monthly Savings $103.82 $0.00 Annual Savings $1,245.84

5 Stipulations: IRS rules state that you will not be allowed to make changes to your tax sheltered insurances unless you incur a change in status or, During the Annual Enrollment Period.

6 Status Change Examples:
Change in Marital Status – Marriage, Divorce, Legal Separation, Annulment Change in the number of tax dependents – Birth, Adoption, Death Change in employment status of employee, spouse, or dependents – Termination, LWOP, FMLA, F/T to P/T

7 When May I Enroll? During Annual Enrollment or
Within 30 days of a change in family status

8 Premium Only No Cost to Participate No Reenrollment

9 Spending Accounts Health Care Dependent Care

10 HC Eligible Expenses: Medical deductibles and co-payments
(office visits, physicals, etc.) Dental expenses (check-ups, cleanings, braces) Vision expenses (exams, glasses, contacts) Prescription drugs

11 How Do I Save? With HC Acct W/out HC Acct Annual Pay $30,000.00
Spending Account Contribution $2,000.00 0.00 Taxes Paid (21.5%) $6,020.00 6,450.00 After Tax Expenses 2,000.00 Income $21,980.00 $21,550.00 Savings $430.00

12 HC Acct vs. Tax Deduct You may only claim medical expenses that are in excess of 7.5% of your gross income and you are required to itemize to take the deduction (7.5% of a $30,000 is $2,250). The minimum for the HC account is $100 per year so you can reap the tax benefits without having to contribute a large amount of money.

13 HC Acct and Insurance Prescriptions Deductibles Co-Pays Co-Insurances

14 Spending Accounts Dependent Care – Cost of care for children & elderly adults to enable you to work.

15 DC – Eligible Expenses Day-Care for Pre-K age or under.
Before/After School care for children up to age 12. Summer Camp (up to age 12). Care for an elderly adult.

16 Spending Account Contributions
DC Example: With DC Acct W/out DC Acct Annual Pay $30,000.00 Spending Account Contributions $5,000.00 0.00 Taxes Paid (21.5%) $5,375.00 6,450.00 After Tax Expenses 5,000.00 Income $19,625.00 $18,550.00 Savings $1,075.00

17 DC Acct vs. Tax Deduct If you claim the DC expenses as a tax deduct, the maximum expenses allowed is $3, for one dependent and $6, for two or more.

18 % Credit of expenses up to max.
DC Acct vs. Tax Deduct Gross Annual Salary % Credit of expenses up to max. Maximum 1 dep / 2 or more 15, or less 35% / 30,000.00 27% / 43,001.00 20% /

19 Example: If your gross annual income is $30, and you have one child in daycare with annual expenses of $5, your savings, under the tax saver plan, would equal $1, and your savings under the Tax Credit would be $

20 Spending Acctount Fees
$ 5.10 per month $ Must reenroll each year

21 Annual Contribution Annual Maximum: *Health Care Acct. - $2,500 Max
*Dependent Care Acct. - $5,000 Max Annual Minimum: *HC and/or DC acct. is $

22 Flexibility Debit Card Change in Family Status Grace Period
*Employees may enroll, change accounts and/or amounts, or choose to discontinue participation during the April open enrollment period prior to each plan year. Once elections are made, they can only be changed if the participant experiences a qualifying change in family status.

23 Use It or Lose It Plan members should estimate their expenses carefully because remaining funds at the end of the plan year are forfeited.

24 visit our website at:
Questions? For more information, visit our website at:

Download ppt "TaxSaver Flexible Benefits Plan"

Similar presentations

Ads by Google