1. Plan Year Expenses
Group Insurance Premiums
$
Health Care FSA
$
Dependent Care FSA
$
(A)
TOTAL
2. Marginal Tax Bracket
(% paid in Federal, FICA, State taxes, as applicable):
Consult your tax advisor if unsure of the correct amounts
$
(B)
3. Plan Year Tax Savings Using BESTflex Plan*
A x B =
$
(C)
Electing
$
(A)
to pay for eligible medical expenses would only cost you
$
(A - C)
because you would save*
$
(C)
by participating in the BESTflex Plan
4. Per Paycheck Tax Savings Using the BESTflex Plan
(C) / number of pay periods in Plan Year =
$
Let’s say you make $3000 a month. Taxes take at least 30% right off the top, leaving you
$2100 in take-home pay. If your medical expenses are $100 a month and your daycare
expenses are $400, that leaves you $1600 a month.
With the BESTflex Plan, you set aside the
$100 for medical expenses and $400 for daycare, leaving you $2500 as
your taxable, monthly income.
After taxes, that leaves you with $1750 in take home pay, a net gain of
$150 a month or $1800 a year.
That’s how the BESTflex Plan works.
Note: The salary and tax example shown is a broad approximation of tax liability. You should consult a tax advisor for
help with your own situation. Current IRS tax laws control all BESTflex Plan matters
*Note plan year tax savings is an Illustration only.
$ 3,000.00
- 900.00
$ 2,100.00
-100.00
-400.00
$ 1,600.00
$ 19,200.00
Gross Pay
Taxes
Medical Expenses
Day Care Expenses
Monthly Take-Home
Annual Take-Home
Without the BESTflex Plan:
$ 3,000.00
-100.00
-400.00
$ 2,500.00
- 750.00
$ 1,750.00
$ 21,000.00
$ 1,800.00
Gross Pay
Medical Expenses
Day Care Expenses
Taxes
Monthly Take-Home
Annual Take-Home
Annual Savings
With the BESTflex Plan:
© 2011 Employee Benefits Corporation 1256-0111
Tax Savings Calculation Worksheet
Fax to: 608 831 4790
Mail to: Employee Benefits Corporation, PO Box 44347, Madison WI 53744-4347
Phone support: 800 346 2126, 608 831 8445, M - F 8:00 - 5:00 Central
E-mail support: participantservices@ebcflex.com
Section 125 Administration
