Here's an example of how a PriorityFSASM can help you save money on taxes:
|
Without AN FSA |
With AN FSA |
| Annual earnings |
$30,000 |
$30,000 |
| Health care account |
$0 |
$300 |
| Dependent care account |
$0 |
$3,000 |
| Taxable earnings |
$30,000 |
$26,700 |
| Federal income tax (15%) |
$4,500 |
$4,005 |
|
State tax (6%)
|
$1,800 |
$1,602 |
| Social Security tax and Medicare tax
(7.65%) |
$2,295 |
$2,043 |
| Total taxes |
$8,595 |
$7,650 |
| After-tax health care payments |
$300 |
$0 |
| After-tax dependent care payments |
$3,000 |
$0 |
| Annual take-home pay |
$18,105 |
$19,050 |
| TOTAL SAVINGS1 |
|
$945 |
1 Employees are
encouraged to talk to their accountant or tax advisor on Flexible Spending
Accounts. Your total tax savings will be based on your unique circumstances
and needs.
Last modified
10/08/07
|
