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 Why
Participate in Flex Plans?
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It’s the very best way to trade taxes for benefits!
You determine a set amount to have deducted from your paycheck (and/or utilizing
employer credits) for medical, dental, vision or dependent care expenses - pretax. The
amount is exempt from Federal, most State*, Social Security and Medicare taxes and will
never be reported as gross income to you. Since you report less to Uncle Sam, legally you
are able to keep more money for other expenses. |
| Here is a simple illustration of why Flex accounts allow
you to reduce your taxes to help pay for eligible expenses. This example uses a combined
tax base of 32%. The higher your tax bracket, the greater your savings. |
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| This example, using pre-tax dollars to
pay medical, dental or vision care insurance premiums and some co-payments, put $800 in
this participant’s pocket—money that otherwise would have been paid in
unnecessary taxes. |
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| Check out our SAVINGS CALCULATOR! Average
total tax brackets run from 26.15% to 42% or more of gross income. The average employee
taking part in this IRS Approved Plan saved $508.73 using the medical, dental, and vision
care deductions. Those also using the dependent care deduction saved $1,361.23.
Additionally, in some cases reducing taxable income lowers your marginal tax bracket,
thereby reducing the rate of income tax on the remaining earnings. Your accountant or tax
advisor can better calculate your exact savings.
*Check with your Flexible Benefits Specialist, your HR director or state taxing (NY) authority to determine whether your flex plan
qualifies for state tax exemption. |
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