Flexible Benefits Products
A virtually cost-free employee benefit
that allows employees to set aside pre-tax earnings for payment of certain
insurance premiums, approved reimbursable medical expenses and childcare
expenses.
Plus, decreasing the taxable income of your employees not only
saves them money, but lowers your payroll taxes as well.
Premium Payment Plan
Employees pay for certain insurance premiums
on a pre-tax basis. Eligible premiums include health insurance,
term life, disability, accident insurance, cancer insurance and hospital indemnity
coverage.
Medical Spending Plan
Set aside pre-tax earnings for health care expenses such as health plan
deductibles, copayments, coinsurance, and more.
Dependent Care Plan
Use pre-tax dollars for eligible expenses resulting
from infant and child daycare, adult and senior daycare, before- and
after-school
care, day camp and certain housekeeping services.
Automatic Claim Reimbursement
Employees who participate in their employer’s health insurance
coverage through BlueCross BlueShield of Tennessee, have the
choice of automatic reimbursement from their Medical Spending Plan
for most
standard medical procedures.
See for yourself how you can lower your payroll taxes:
| |
Without A Flexible Benefits Program |
With A Flexible Benefits Program |
| Annual Payroll |
$500,000 |
$500,000 |
| Employee Deductions |
-$0 |
-$20,000 |
| Taxable Payroll |
$500,000 |
$480,000 |
| FICA Tax (7.65%) |
$38,250
|
$36,720
|
| Employer Savings |
$0 |
$1,530 |
Calculations are based on a fixed set of variables. Actual
figures may vary. This calculator is for estimating purposes only.
Please call your broker or contact GIS for
more information or for a more accurate representation of your tax
savings.
Participating members can access their FSA account balance by visiting the Select Data Service Administrators (SDSA) at
SelectDataService.com.
|
