Agenda Packets - 1988/08/01 - Laserfiche WebLink

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The DCA Fiebble Spending Account Plan :(educed For every pre-tax dollar of compensation Payroll below the Social Security wage base your employees earmark for use in their Flexible t'ASts Spending Ateounts, your company can save over seven teats in payroll taxes. For example, if IM employees each contribute UN.00 per month to the Plan, your company could save over $700.00 in Social Security and other payro;l taxes every month: .0'I x E10,000 = $700 n Increased For each pre-tax Flexibe Spending Account lekehcme (FSA) plan dollar your employees spend on uninsured health care expenses and Pay dt; endeat day care expenses, lake -home pay can be increased by forty to fifty cents, and even more in some cases. For example, an tmployce who pays:N in federal income l,x, 10% in stale income tax and 71 in FICA tax: Earnings keruirrd Ta Pro ;1,000In Health Care and Day Care Expenses IFith the Plan N'it ouf the Plan i11000 t1,000 Advantages Foremployers... for The DCA Flexible Spending Account (FSA) i6 p ye[S plan caables employees to prcvi,ie a valuable new benefit while, at the some time, reducing will for overall payroll tax expenditures. It creates a Employees competitive edge in attracting and retairing employees. Employee premiums, deductibles and co-insurance paid with pre-tax FSA dollar; pave the way for increased employee benefit cost sharing and additional, oisl- efficient flexible benefit programs. Overall benefit costs can be reduced considerably. How It Forks You could think cf the FSA plan as an easy and extremely attractive addition to your existing employee benefit package. The DCA FSA plan may provide all t +flexibility art benefit enhancement you want or need at this time. Or... In a more broadly-based flexible compensation htrtegy, the WA FSA plan can provide a dramatic beginning and an extremely cost- efficient cornerstone in building toward your more comprehensive program. Foremployees... The DCa Flexible Spending Account IFSA) plan gives employees the means to convert otherwise taxable compensation into tax-free health care and dependent day care benefits. The plan is voluntary. Employees may contribute from zero up to a substantial maximum dollar amouul... depending on their individ_al life cycle needs. All contributions are made to the plan through convenient payroll deductions. rartiupal. obtain a material reduction in overall federal income taxes, FICA taxes and state income taxes. and. a considerable increase in take-home pay. Even if an employee joins an RMO or elects oGnerfirst-dollar health care coverV, he or she undoubtedly will incur additional health rare or day care expenses that will not be paid by any of the companys other empbyce benefit programs. FSA's allow each employee to set aside pre-tax dollars from every paycheck to pay for a variety of otherwise after -lax expanses, some of which are: • Premiums -All employee -paid premiums for company -sponsored health care plans and for certain disability incomear rife insurance plans. lealth Care -All medical and dental plan i-" deductible amounts and ca-payments; eyeglasses, or other expense insurance pla • Dependent Do incurred by a xpousea are al maximum am year, mit6 a li Employee premi insurance plans pre-tax basis th system. For other eligib' pay the bills as submit records r adjudication am pre-tax FSA acc A Sound Ida:... Flexible Spen?h around in one fa seventl' .11sn k plans, expense r, teria plans, thoy implemented by throughout the ...Ouked with th Expertise of Kt DCA has design leled low-cost, install Flexible exclusive use by The Full_ The DOA FSA s SerY1GeM simple ... becau ments are the t flexible and participant Spending month and the System as neyepartici pro he co reco ping