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"STOP Buying Health Plans and START Buying Health Insurance!"
This book is a guide with the latest techniques and strategies that show you how to save thousands on your group health insurance program.
CPA's - We are approved by both the NJ & NY Boards of Accountancy to provide CE credits to CPAs on HDHP/CDHC
Flexible Spending Accounts (FSA)
A Flexible Spending Account (FSA) is an employee-owned account that uses pre-tax dollars to pay for out-of-pocket medical, dental, vision and dependent expenses for employees and their family members. An FSA program generates tax savings for both employers and employees.
Medical - Flexible Spending Account:
Medical FSA plans reduce medical benefit cost for both employers and employees. As tax rates go up, savings increase.
Examples of What's Covered Under A Medical Savings Account:
- Deductibles & Co-Insurance Payments for Both Medical and Dental
Office Visit, Emergency Room & Hospital Co-Payments
Birth Control Pills
Chiropractic Care
Acupuncture
Educational Aids For Handicapped Individuals
Eye Exams, Glasses, Contact Lenses & Solution
Lasik Eye Surgery
Hearing Aids and Batteries
Infertility Treatment
Orthodontia
Orthopedic Shoes
Physical Therapy
Prescription Drugs & Co-Pays
Psychiatric/Phychologist/Social Worker Counseling
Example: John is married, earning $40,000.00 per year, with two children and has $1,000.00 of out-of-pocket medical expenses.
| Without an FSA | With an FSA | |
|---|---|---|
| Annual Salary | $40,000.00 | $40,000.00 |
| Pre-tax deferral | -$0 | - $1,000 |
| Taxable Income | $40,000 | $39,000 |
| Taxes* | -$14,000 | -$13,904 |
| Medical Expenses | -$1,000 | -$0 |
| Take Home Pay | $24,740 | $25,096 |
Annual Savings $356
John's Net Cost $644
*Includes FIT and FICA taxes. NJ residents are required to pay state income tax on gross pay.
Dependent - Flexible Spending Account:Dependent FSA Accounts reduce dependent care cost for both employers and employees. As tax rates go up, savings increase.
Examples Of Dependent Care:
- For Children Up To Age 13
After-School Care
Nursery School
Kindergarten
Day Camp
Elder Care (over age 13)
Example: Jane is single parent with one child, earning $25,000.00 per year, with annual day care expenses of $2,500.00.
| Without an FSA | With an FSA | |
|---|---|---|
| Annual Salary | $25,000 | $25,000 |
| Pre-tax deferral | -$0 | -$2,500 |
| Taxable Income | $25,000 | $22,500 |
| Taxes* | -$5,956 | -$5,096 |
| Dependent Care Expenses | -$2,500 | -$0 |
| Take Home Pay | $16,544 | $17,404 |
Annual Savings $ 860
Jane’s Net Cost $1,640
*Includes FIT and FICA taxes. NJ residents are required to pay state income tax on gross pay.
Employee Work Sheet.xls
Download a list of qualified medical expenses here.
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Stratford Video |
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