Formula Benefits * 2919 Eagandale Blvd, Suite 120, Eagan MN 55121
Flexible Spending (FSA) &
Dependent Care Accounts


To help employees stretch their hard earned dollar farther introduce a Flexible Spending Account with Formula Benefits for only $2.55 per employee per month. By taking pretax deductions payroll taxes such as Federal, State and Social Security are decreased which in turn increases take-home pay. Below is a sample of how an FSA Account can help make the most of every dollar earned.


TAX SAVINGS EXAMPLE:

(assuming 28% federal tax and 6% state tax)



Without an FSA Account

With an FSA Account

Monthly Salary

$3,000.00

$3,000.00

Pre-Tax FSA Contribution

$0.00

$500.00

Taxable Salary

$3,000.00

$2,500.00

Federal Income Tax & FICA

$1,249.50

$1,041.25

Take Home Pay

$1,750.50

$1,458.75

After-Tax Expenses

$500.00

$0.00

Net Take-Home Pay

$1,250.00

$1,458.75

INCREASE IN MONTHLY SPENDABLE INCOME

Not Applicable

$208.75

INCREASE IN ANNUAL SPENDABLE INCOME

Not Applicable

$2,505.00



Sample Listing of Eligible Medical Expenses:


  • Deductible

  • Orthodontics

  • Vision Care & Materials

  • Co-Pays

  • Therapy Treatments

  • Hearing Care

  • Chiropractic

  • Laser Surgery

  • Certain Over the Counter Medications

*for a more comprehensive list please visit www.irs.gov search word 213(d) expenses


DEPENDENT CARE



Employees can also set aside up to $5,000.00 for Daycare Expenses ($2,500 if married filing separately).


These pre-tax dollars can be used for eligible children under the age of 13, or an older dependent that is unable to care for themselves.


Formula Benefits offers Dependent Care Reimbursement to employees for only $2.45 per employee/per month.