How will a Flex Plan benefit me?

By participating in a Flex Plan, you will not have to pay State or Federal income tax or Social Security on your elections! Uncle Sam does not get a share of the money! Let us look at one employee and see how he saved on taxes by participating in a Flex plan. Here is the employee's situation:

  • Salary: $2,500 a month
  • Withholding: 28% for federal withholding and 7.65% for Social Security

Before participation in the Flex plan, the employee paid the following:

  • Monthly premium for health insurance: $348
  • Out-of-pocket medical expenses: Monthly average of $100
  • Day Care Expenses: $200 a month

The employee decided to pay for the premiums through the Flex plan, to put $100 a month in a Health FSA and $200 a month into the Dependent Care Expense Plan.

To see how this employee saved $230 a month or $2,760 a year by participating in his Flex plan, click here.

Last update on May, 16 2013 by Administrator.

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