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Flexible
Spending Account Example Employee Profiles
Employee
Profile
Name: Sean Smith
Age: 20
Marital status: single
Occupation: Delivery Driver
Annual income: $25,000
Weekly salary: $480
Wears glasses, expense to employee: $300.00
Visits the chiropractor 24 times, expense to employee: $240.00
Estimated annual healthcare expense: $540.00
Estimated weekly healthcare expense: $10.38 |
| |
Without
Spending Account |
With
Spending Account |
| Weekly Salary |
$480.00 |
$480.00 |
| Weekly Pre-Tax
Contributions |
$0.00 |
$10.80 |
| Taxable Income |
$480.00 |
$469.20 |
| Federal Income
Tax |
$171.12 |
$167.27 |
| Take-Home
Pay |
$308.88 |
$301.93 |
| After-Tax
Expenses |
$10.80 |
$0.00 |
| Net Take-Home
Pay |
$298.02 |
$301.93 |
| Increase in
Weekly Income |
$0.00 |
$3.85 |
| Increase in
Annual Spendable Income* |
$0.00 |
$200.20 |
| *This
is a rough estimate only, since this example does not use actual
multi-level tax structure. Your savings may be higher or lower than
indicated. |
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Employee
Profile:
Name: Jean Smith
Age: 40
Marital status: married
Children: 2
Occupation: Assistant Manager
Annual income: $35,000
Weekly salary: $673
Child requires braces, expense to employee: $2,000.00
Family visits physician 10 times annually, expense to employee:
$150.00
Spouse wears contact lenses, expense to employee: $350.00
Estimated annual healthcare expense: $2,500.00
Estimated weekly healthcare expense: $48.00 |
| |
Without
Spending Account |
With Spending
Account |
| Weekly Salary |
$673.00 |
$673.00 |
| Weekly Pre-Tax
Contributions |
$0.00 |
$48.00 |
| Taxable Income |
$673.00 |
$625.20 |
| Federal Income
Tax |
$239.92 |
$222.81 |
| Take-Home
Pay |
$433.08 |
$402.19 |
| After-Tax
Expenses |
$48.00 |
$0.00 |
| Net Take-Home
Pay |
$385.08 |
$402.19 |
| Increase in
Weekly Income |
$0.00 |
$17.11 |
| Increase in
Annual Spendable Income* |
$0.00 |
$889.72 |
| *This
is a rough estimate only, since this example does not use actual
multi-level tax structure. Your savings may be higher or lower than
indicated. |
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Employee
Profile:
Name: George Smith
Age: 41
Marital status: divorced
Children: 1
Occupation: Associate Buyer
Annual income: $40,000
Weekly salary: $769
LASIK eye surgery, expense to employee: $2,000.00
Physical/massage therapy, expense to employee: $200.00
Employee needs hearing aid, annual expense to employee: $800.00
Estimated annual healthcare expense: $3,000.00
Estimated weekly healthcare expense: $57.70 |
|
Without
Spending Account |
With
Spending Account |
| Weekly Salary |
$769.00 |
$769.00 |
| Weekly Pre-Tax
Contributions |
$0.00 |
$57.70 |
| Taxable Income |
$769.00 |
$711.30 |
| Federal Income
Tax |
$274.15 |
$253.58 |
| Take-Home
Pay |
$494.85 |
$457.72 |
| After-Tax
Expenses |
$57.70 |
$0.00 |
| Net Take-Home
Pay |
$437.15 |
$457.72 |
| Increase in
Weekly Income |
$0.00 |
$20.57 |
| Increase in
Annual Spendable Income* |
$0.00 |
$1,069.64 |
| *This
is a rough estimate only, since this example does not use actual
multi-level tax structure. Your savings may be higher or lower than
indicated. |
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Employee
Profile:
Name: Michelle Smith
Age: 38
Marital status: married
Children: 2
Occupation: Manager
Annual income: $50,000
Weekly salary: $961.00
Employee is expecting a baby, out-of-pocket for the delivery to
employee: $1,500.00
Six newborn physician visits, expense to employee: $60.00
Spouse is on maintenance medications, expense to employee: $240.00
Children in daycare, expense to employee: $5,000.00
Employee can elect to participate in Healthcare and Dependent Care
Spending Accounts
Estimated annual healthcare expense: $6,800.00
Estimated weekly healthcare expense: $130.77 |
|
Without
Spending Account |
With
Spending Account |
| Weekly Salary |
$961.00 |
$961.00 |
| Weekly Pre-Tax
Contributions |
$0.00 |
$130.77 |
| Taxable Income |
$961.00 |
$830.23 |
| Federal Income
Tax |
$342.60 |
$295.95 |
| Take-Home
Pay |
$618.40 |
$534.25 |
| After-Tax
Expenses |
$130.77 |
$0.00 |
| Net Take-Home
Pay |
$487.63 |
$534.25 |
| Increase in
Weekly Income |
$0.00 |
$46.62 |
| Increase in
Annual Spendable Income* |
$0.00 |
$2,424.24 |
| *This
is a rough estimate only, since this example does not use actual
multi-level tax structure. Your savings may be higher or lower than
indicated. |
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Employee
Profile:
Name: Edward Smith
Age: 45
Marital status: married
Occupation: Broker
Annual income: $60,000
Weekly salary: $1,153.00
Employee and spouse need glasses, expense to employee: $600.00
Spouse will be purchasing prescription sunglasses, expense to employee:
$240.00
Employee and spouse are on maintenance medications, expense to employee:
$480.00
Estimated annual healthcare expense: $1,320.00
Estimated weekly healthcare expense: $25.38 |
|
Without
Spending Account |
With
Spending Account |
| Weekly Salary |
$1,153.00 |
$1,153.00 |
| Weekly Pre-Tax
Contributions |
$0.00 |
$25.38 |
| Taxable Income |
$1,153.00 |
$1,127.62 |
| Federal Income
Tax |
$411.04 |
$402.00 |
| Take-Home
Pay |
$741.96 |
$725.62 |
| After-Tax
Expenses |
$25.38 |
$0.00 |
| Net Take-Home
Pay |
$716.58 |
$725.62 |
| Increase in
Weekly Income |
$0.00 |
$9.05 |
| Increase in
Annual Spendable Income* |
$0.00 |
$470.60 |
| *This
is a rough estimate only, since this example does not use actual
multi-level tax structure. Your savings may be higher or lower than
indicated. |
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Employee
Profile:
Name: Jacob Smith
Age: 35
Marital status: single
Occupation: Technical Specialist
Annual income: $70,000
Weekly salary: $1,346.00
Employee will be in a smoking cessation program, expense to employee:
$400.00
Employee will be purchasing insulin/diabetic supplies, expense to
employee: $1,000.00
Employee needs two crowns, expense to employee: $400.00
Estimated annual healthcare expense: $1,800.00
Estimated weekly healthcare expense: $34.62 |
|
Without
Spending Account |
With
Spending Account |
| Weekly Salary |
$1,800.00 |
$1,800.00 |
| Weekly Pre-Tax
Contributions |
$0.00 |
$34.62 |
| Taxable Income |
$1,800.00 |
$1,765.38 |
| Federal Income
Tax |
$641.70 |
$629.35 |
| Take-Home
Pay |
$1,158.30 |
$1,136.02 |
| After-Tax
Expenses |
$34,62 |
$0.00 |
| Net Take-Home
Pay |
$1,123.68 |
$1,136.02 |
| Increase in
Weekly Income |
$0.00 |
$12.34 |
| Increase in
Annual Spendable Income* |
$0.00 |
$641.68 |
| *This
is a rough estimate only, since this example does not use actual
multi-level tax structure. Your savings may be higher or lower than
indicated. |
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