| The example below illustrates the savings of a typical Cafeteria Plan member
| |
Without Cafeteria Plan |
With Cafeteria Plan |
| Gross Monthly Compensation |
$1000.00 |
$1000.00 |
| Less Pre-Tax Expenses |
|
|
| w Medical Expense |
|
$50.00 |
| w Dependent Child Care |
|
$250.00 |
| w Group Medical Insurance Premium |
|
$77.50 |
| Gross Taxable Income |
$1000.00 |
$622.50 |
| Less Taxes and After Tax Exenses |
|
|
| w Federal Income Tax at 20% |
$200.00 |
$124.50 |
| w State Income Tax at 10% |
$100.00 |
$62.25 |
| w Social Security Tax at 7.65% |
$76.50 |
$47.62 |
| w Group Medical Insurance Premium |
$75.00 |
|
| w Group Life Insurance Premium |
$2.50 |
|
| Net Paycheck |
$546.00 |
$388.12 |
| Plus Cafeteria Plan Reimbursements |
|
|
| w Medical Expense Reimbursement |
|
$50.00 |
| w Dependent Care Reimbursement |
|
$250.00 |
| Disposable Income |
$546.00 |
$688.12 |
| Estimated Increase in Spendable Income Per Month |
|
$142.13 |
| Estimated Increase in Spendable Income Per Year |
|
$1705.56 |
This represents a 21% increase in this employee's disposable income. In essence, it is equivalent to a 21% pay raise
Blank copy of the worksheet above
Worksheet to figure your total annual expenses
To File A Claim:
Simply fill out the Reimbursement Request Form and submit it with a copy of the receipt for expenses within 60 days of the event to our offices via either fax or mail.
|