Free Money for your Employees!
By opening a Flexible Spending Account for Health Care Expenses, which every individual has, an employee can create a new pool of funds that otherwise go to the government in the form of taxes.
By opening a Flexible Spending Account for Childcare Expenses, which many individuals have, it will further increase an employee’s ability to create a new pool of funds that otherwise will go to the government in the form of taxes. For more information on Flexible Spending Accounts contact your local 125 plan representative or contact Matt Hedges, Great Harbor Benefits, 508-540-7940 x 11 or email him at ghbcapecod@aol.com.
Thousands of employees across the USA each year throw money away by continuing to spend their hard worked earnings for medical related items and childcare expenses with post tax dollars. The savings are not tied to an employee’s ability to earn a higher salary. If an employee has the expenses, then an employee should not think twice about using a flexible spending account.
Below I have presented two simple charts to show the dollar value of utilizing the benefit of Flexible Spending Accounts.
| Flexible Spending Accounts | Amount Pre tax | Amount Pre tax | Tax Bracket Savings | ||||
| Per Month | Per Year |
10% |
15% |
20% |
25% |
28% |
|
| Dependent Care Account |
$208.33 |
$2,500 |
$250.00 |
$375.00 |
$500.00 |
$625.00 |
$700.00 |
| Health Care Account |
$208.33 |
$2,500 |
$250.00 |
$375.00 |
$500.00 |
$625.00 |
$700.00 |
| Net Savings |
$500.00 |
$750.00 |
$1,000.00 |
$1,250.00 |
$1,400.00 |
||
| Flexible Spending Accounts | Amount Pre tax | Amount Pre tax | Tax Bracket Savings | ||||
| Per Month | Per Year |
10% |
15% |
20% |
25% |
28% |
|
| Dependent Care Account |
$416.67 |
$5,000 |
$500.00 |
$750.00 |
$1,000.00 |
$1,250.00 |
$1,400.00 |
| Health Care Account |
$416.67 |
$5,000 |
$500.00 |
$750.00 |
$1,000.00 |
$1,250.00 |
$1,400.00 |
| Net Savings |
$1,000.00 |
$1,500.00 |
$2,000.00 |
$2,500.00 |
$2,800.00 |
||
