Annual Contribution
Each year, you’ll decide which plans you want to enroll in and how much money you want to put in them. Your employer deducts those amounts pre-tax each pay period and keeps the money in an employer bank account until you need it.
Shortly after you enroll, you’ll automatically receive a FlexRight Benefits Card that works like a debit card. As expenses come up, you use the card, pay with cash or write a check. If you pay with cash or check, you’ll use this website to file an online reimbursement request, and within a few days the money is deposited directly to your account. For most expenses, you’ll also need to mail or fax in a copy of your receipt.
That’s it. A tax savings example is shown below, but if you’d like to get a better of idea of how much you can save, click here for our employee calculator.
| Breakdown of Pay Check and Deduction | Without FlexRight | With FlexRight |
|---|---|---|
| Gross Monthly Pay | $2,500.00 | $2,500.00 |
| Less Employee Health Plan Contribution | (348.00) | |
| Less Other Medical/Dental Expenses | (100.00) | |
| Less Day Care Expenses | (200.00) | |
| Taxable Income | 2,500.00 | 1,852.00 |
| Less 28% Federal Witholding | (700.00) | (519.00) |
| Less 7.65% Social Security Tax | (191.00) | (142.00) |
| Less Employee Health Plan Contribution | (348.00) | |
| Less Other Medical/Dental Expenses | (100.00) | |
| Less Day Care Expenses | (200.00) | |
| Spendable Income | $961.00 | $1,191.00 |
The employee saved $230 a month or $2,760 a year by participating in Plan!
This savings results in extra spendable income and this occurs because the employee participated in the Plan and made the required employee contributions before the taxes were withheld. This is just one example of the possible tax savings under the Plan.